An award is being established, and it will pay $11,000 every 3 years, with the first...
An award is being established, and it will pay $11,000 every 3 years, with the first installment being paid in three years. The award will be given for an indefinitely long period of time. If the interest rate is 3% per annum, what lump-sum amount of money (invested now) will be required to endow this award forever?
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An award is being established, and it will pay $11,000 every 3
years, with the first...
An environmental trust will pay $73,726 once every 3 years for remediation of a site for...
An environmental trust will pay $73,726 once every 3 years for remediation of a site for an indefinitely long period of time. The interest rate is 7% per year. If the project is due to start, and the first payment made, in 3 years, how much money must be invested today? Round to the nearest dollar.
Marion’s grandfather’s will established a trust that will pay her $3200 every three months for 11...
Marion’s grandfather’s will established a trust that will pay her $3200 every three months for 11 years. The first payment will be made six years from now, when she turns 19. If money is worth 8.2% compounded quarterly, what is today’s economic value of the bequest? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Part1: The Boxing Fund must pay an old boxer R18 000 every three months indefinitely. Money...
Part1: The Boxing Fund must pay an old boxer R18 000 every three months indefinitely. Money is worth 11.4% per year, compounded quarterly. What is the opening balance? Part2: If the boxer decides to reschedule his compensation in three payments; the first payment now, the second payment twice the size of the first payment four years from now, and the third payment three times the size of the first payment nine years from now. The Boxing fund agrees on condition...
How much should you be willing to pay for a lump sum of $7,000 3 years...
How much should you be willing to pay for a lump sum of $7,000 3 years from now if you can earn 2% every 6 months on other similar investments The amount you should be willing to pay, PV, is S (Round to the nearest cent.)
Fraser Company will need a new warehouse in nine years. The warehouse will cost $440,000 to...
Fraser Company will need a new warehouse in nine years. The warehouse will cost $440,000 to build. To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) What lump-sum amount should the company invest now to have the $440,000 available at the end of the nine-year period? Assume that the company...
Fraser Company will need a new warehouse in five years. The warehouse will cost $440,000 to...
Fraser Company will need a new warehouse in five years. The warehouse will cost $440,000 to build To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) What lump-sum amount should the company invest now to have the $440,000 available at the end of the five-year period? Assume that the company...
Fraser Company will need a new warehouse in ten years. The warehouse will cost $450,000 to...
Fraser Company will need a new warehouse in ten years. The warehouse will cost $450,000 to build. To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) What lump-sum amount should the company invest now to have the $450.000 available at the end of the ten-year period? Assume that the company...
1. Deposits of $1200.00 are being made at the beginning of every 3 months for 10...
1. Deposits of $1200.00 are being made at the beginning of
every 3 months for 10 years. At the end of the 10 year term the
accumulated amount is left in the fund for a further 5 years (the
deposits have stopped). What is the maturity value at the end of
the 15 year term if the interest rate for the full period is 5.25%
compounded semiannually?
2. Find the monthly payments for a mortgage of $200,000 that
is to...
Karen has won $50,000 from a lawsuit. The money will be paid out in 8 equal-sized annual payments (payments are made a...
Karen has won $50,000 from a lawsuit. The money will be paid out in 8 equal-sized annual payments (payments are made at the end of each year). If Karen invests each payment in an account that earns 4.6% interest, compounded annually, how much will she have at the end of 8 years? Preview After Karen wins her lawsuit, she is approached by a structured settlement company. They offer her $48,500, paid immediately, in return for her annual lawsuit payments. How...
20 pm andmother would like to pay your first two years of rent while you're in...
20 pm andmother would like to pay your first two years of rent while you're in college by giving you the money you'll need in one lump sum. You share an apartment with another student and currently spend 300 per month on your share of the rent. Assume you receive the lump sum today, and you will raw 5300 per month, starting one month from today and continuing every month thereafter for two years. (PIA, 170, 24) a (o points)...
How much should you be willing to pay for a lump sum of $7,000 3 years from now if you can earn 2% every 6 months on other similar investments The amount you should be willing to pay, PV, is S (Round to the nearest cent.)
Fraser Company will need a new warehouse in nine years. The warehouse will cost $440,000 to build. To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) What lump-sum amount should the company invest now to have the $440,000 available at the end of the nine-year period? Assume that the company...
Fraser Company will need a new warehouse in five years. The warehouse will cost $440,000 to build To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) What lump-sum amount should the company invest now to have the $440,000 available at the end of the five-year period? Assume that the company...
Fraser Company will need a new warehouse in ten years. The warehouse will cost $450,000 to build. To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) What lump-sum amount should the company invest now to have the $450.000 available at the end of the ten-year period? Assume that the company...
1. Deposits of $1200.00 are being made at the beginning of
every 3 months for 10 years. At the end of the 10 year term the
accumulated amount is left in the fund for a further 5 years (the
deposits have stopped). What is the maturity value at the end of
the 15 year term if the interest rate for the full period is 5.25%
compounded semiannually?
2. Find the monthly payments for a mortgage of $200,000 that
is to...
Karen has won $50,000 from a lawsuit. The money will be paid out in 8 equal-sized annual payments (payments are made at the end of each year). If Karen invests each payment in an account that earns 4.6% interest, compounded annually, how much will she have at the end of 8 years? Preview After Karen wins her lawsuit, she is approached by a structured settlement company. They offer her $48,500, paid immediately, in return for her annual lawsuit payments. How...
20 pm andmother would like to pay your first two years of rent while you're in college by giving you the money you'll need in one lump sum. You share an apartment with another student and currently spend 300 per month on your share of the rent. Assume you receive the lump sum today, and you will raw 5300 per month, starting one month from today and continuing every month thereafter for two years. (PIA, 170, 24) a (o points)...
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