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Question 8 1 pts You buy an ordinary annuity today for $121,330, which promises to pay...
Question 8 1 pts You buy an ordinary annuity today for $127.791, which promises to pay...
Question 8 1 pts You buy an ordinary annuity today for $127.791, which promises to pay you $13,753 per year. If the interest rate is 7.25 percent, for how many years will you receive payments? Answer to 4 decimals. 15.9991
PLEASE ANSWER EVERYTHING ASAP THANK YOU!!! Investment X offers to pay you $3,728 per year for...
PLEASE ANSWER EVERYTHING ASAP THANK YOU!!!
Investment X offers to pay you $3,728 per year for 9 years, whereas Investment Y offers to pay you $4,690 per year for 5 years. What is the dollar difference (higher minus lower) in the present values of these two cash flow streams if the discount rate is 5.26 percent? Answer to two decimals. What are the annual cash flows (in $) of an annuity for 14 years, which costs $33,721 today, if the...
How much would you be willing to pay today for an annuity that promises to pay...
How much would you be willing to pay today for an annuity that promises to pay $9,554 per year for 19 years, beginning exactly one year from today. Your relevant interest rate is 9 percent.
How much would you be willing to pay today for an annuity that promises to pay...
How much would you be willing to pay today for an annuity that promises to pay $3,882 per year for 12 years, beginning exactly one year from today. Your relevant interest rate is 6 percent. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR
Question 2 3.75 pts You buy a bond for $1000 today that promises interest of $100...
Question 2 3.75 pts You buy a bond for $1000 today that promises interest of $100 in one year plus the return of your principal. However, the probability that the company will default and not pay you either interest nor repay your principal is 5 percent. The expected return on the bond ispercent. O 4.95 O 4.50 O 5.50 O 3.95
7. You buy an annuity which will pay you $12,000 a year for ten years. The...
7. You buy an annuity which will pay you $12,000 a year for ten years. The payments are Tpaid on the last day of each year. What is the value of this annuity today if a 7.0% discount rate is used?
An ordinary annuity selling at $9,697.45 today promises to make equal payments at the end of...
An ordinary annuity selling at $9,697.45 today promises to make equal payments at the end of each year for the next eight years (N). If the annuity's appropriate interest rate (1) remains at 8.00% during this time, the annual annuity payment (PMT) will be You just won the lottery. Congratulations! The jackpot is $85,000,000, paid in eight equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won assuming an...
Present Value of Ordinary Annuity 4. After consulting with your financial advisor, you figured that you...
Present Value of Ordinary Annuity 4. After consulting with your financial advisor, you figured that you need $100,000 per year for your living during 20 years of the retirement period. You consider buying an annuity contract which will pay $100,000 at the end of every year. Assuming a rate of return of 5%, how much do you need today to buy the ordinary annuity contract? a. $1,246,221 5. After consulting with your financial advisor, you figured that you need $100,000...
Answer the following questions: Define an annuity (2 pts.) Suppose you have an ordinary annuity where...
Answer the following questions: Define an annuity (2 pts.) Suppose you have an ordinary annuity where you save $3,000 per year for the next 20 years at an annual interest rate of 8%. How much will you have accumulated at the end of those 20 years? (3 pts.) Suppose you have an immediate annuity where you save $5,000 per year for the next 30 years at an annual interest rate of 6%. How much will you have accumulated at the...
Question7 1 pts You want to buy a new surfboard 4 years from now. You have...
Question7 1 pts You want to buy a new surfboard 4 years from now. You have $500 in the bank today. You can earrn 11% on your savings. If the surfboard will cost $5,000, how much will you have to save every year to have enough to buy it? Round your answer to 2 decimals, for example 100.12. Question 8 1 pts Today you purchased XYZ stock for $92 per share. You will keep the stock for 10 years and...
Question 8 1 pts You buy an ordinary annuity today for $127.791, which promises to pay you $13,753 per year. If the interest rate is 7.25 percent, for how many years will you receive payments? Answer to 4 decimals. 15.9991
PLEASE ANSWER EVERYTHING ASAP THANK YOU!!!
Investment X offers to pay you $3,728 per year for 9 years, whereas Investment Y offers to pay you $4,690 per year for 5 years. What is the dollar difference (higher minus lower) in the present values of these two cash flow streams if the discount rate is 5.26 percent? Answer to two decimals. What are the annual cash flows (in $) of an annuity for 14 years, which costs $33,721 today, if the...
How much would you be willing to pay today for an annuity that promises to pay $3,882 per year for 12 years, beginning exactly one year from today. Your relevant interest rate is 6 percent. DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR
Question 2 3.75 pts You buy a bond for $1000 today that promises interest of $100 in one year plus the return of your principal. However, the probability that the company will default and not pay you either interest nor repay your principal is 5 percent. The expected return on the bond ispercent. O 4.95 O 4.50 O 5.50 O 3.95
7. You buy an annuity which will pay you $12,000 a year for ten years. The payments are Tpaid on the last day of each year. What is the value of this annuity today if a 7.0% discount rate is used?
An ordinary annuity selling at $9,697.45 today promises to make equal payments at the end of each year for the next eight years (N). If the annuity's appropriate interest rate (1) remains at 8.00% during this time, the annual annuity payment (PMT) will be You just won the lottery. Congratulations! The jackpot is $85,000,000, paid in eight equal annual payments. The first payment on the lottery jackpot will be made today. In present value terms, you really won assuming an...
Present Value of Ordinary Annuity 4. After consulting with your financial advisor, you figured that you need $100,000 per year for your living during 20 years of the retirement period. You consider buying an annuity contract which will pay $100,000 at the end of every year. Assuming a rate of return of 5%, how much do you need today to buy the ordinary annuity contract? a. $1,246,221 5. After consulting with your financial advisor, you figured that you need $100,000...
Question7 1 pts You want to buy a new surfboard 4 years from now. You have $500 in the bank today. You can earrn 11% on your savings. If the surfboard will cost $5,000, how much will you have to save every year to have enough to buy it? Round your answer to 2 decimals, for example 100.12. Question 8 1 pts Today you purchased XYZ stock for $92 per share. You will keep the stock for 10 years and...
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