Calculating Present Value of Annuities Peter Lynchpin wants to sell you an investment contract that pays...
Calculating Present Value of Annuities Peter Lynchpin wants to sell you an investment contract that pays equal $22,500 amounts at the end of each year for the next 20 years. If you require an effective annual return of 8 percent on this investment, how much will you pay for the contract today?
Homework Answers
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=22500[1-(1.08)^-20]/0.08
=22500*9.81814741
=$220908.32(Approx).
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Calculating Present Value of Annuities Peter Lynchpin wants to
sell you an investment contract that pays...
Calculating Present Value of Annuities Peter Lynchpin wants to sell you an investment contract that pays...
Calculating Present Value of Annuities Peter Lynchpin wants to sell you an investment contract that pays equal $22,500 amounts at the end of each year for the next 20 years. If you require an effective annual return of 8 percent on this investment, how much will you pay for the contract today?
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question from 1 through 6 • value of each ance Annuities lab.com s onine 6-1. (Calculating the future value of an or...
question from 1 through 6
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Q 29,30,32,34,35
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Calculating Present Value of Annuities Peter Lynchpin wants to sell you an investment contract that pays equal $22,500 amounts at the end of each year for the next 20 years. If you require an effective annual return of 8 percent on this investment, how much will you pay for the contract today?
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question from 1 through 6
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e present value of the cash flows? Sent is the discutate, what is the present value of 000 payments the end of each of the next 19 flows? If 20 percent is the discount at what is the recent value of the discount rate, what is the value of this stream of 6-29. Calculating the future value of an an t he future value of an an that pays 8.000 a year for 10 years at 6 percent...
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