Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $1 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of five years.
Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of...
.Calculate the following: (LG 15-2) Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $1 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of the current year. Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $1 million and the annuity earns a guaranteed annual return...
a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of $230,000 for 20 years? Assume that the annuity will earn 10 percent per year.b. Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $2 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of the current year.c. Calculate the annual cash flows...
a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of $270,000 for 15 years? Assume that the annuity will earn 10 percent per year. b. Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 15-year annuity is $1.7 million and the annuity earns a guaranteed annual return of 10 percent. The payments are to begin at the end of the current year. c....
(Present value of annuity payments) The state lottery's million-dollar payout provides for $1 million to be paid in 20 installments of $50,000 per payment. The first $50,000 payment is made immediately, and the 19 remaining $50,000 payments occur at the end of each of the next 19 years. If 6 percent is the discount rate, what is the present value of this stream of cash flows? If 12 percent is the discount rate, what is the present value of the...
Present value of annuity payments) The state lottery's million-dollar payout provides for $1.1 million to be paid in 20 installments of $55000 per payment. The first $55000 payment is made immediately, and the 19 remaining $55000 payments occur at the end of each of the next 19 years. If 12 percent is the discount rate, what is the present value of this stream of cash flows? If 24 percent is the discount rate, what is the present value of the...
(Present value of annuity payments) The state lottery's million-dollar payout provides for $1.5 million to be paid in 20 installments of $75000 per payment. The first $75000 payment is made immediately, and the 19 remaining $75000 payments occur at the end of each of the next 19 years. If 8 percent is the discount rate, what is the present value of this stream of cash flows? If 16 percent is the discount rate, what is the present value of the...
(Present value of annuity payments) The state lottery's million-dollar payout provides for $1.5 million to be paid in 20 installments of $75000 per payment. The first $75000 payment is made immediately, and the 19 remaining $75000 payments occur at the end of each of the next 19 years. If 8 percent is the discount rate, what is the present value of this stream of cash flows? If 16 percent is the discount rate, what is the present value of the...
(Present value of annuity payments) The state lottery's million-dollar payout provides for $1.4 million to be paid in 20 installments of $70 comma 000 per payment. The first $70 comma 000 payment is made immediately, and the 19 remaining $70 comma 000 payments occur at the end of each of the next 19 years. If 11percent is the discount rate, what is the present value of this stream of cash flows? If 22 percent is the discount rate, what is...
12. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the end of every six mońths O An annuity that pays $1,000 at the...
(Present value of annuity payments) The state lottery's million-dollar payout provides for $1 million to be paid in 25 installments of $40000 per payment. The first $40000 payment is made immediately, and the 24 remaining $40000 payments occur at the end of each of the next 24 years. If 6 percent is the discount rate, what is the present value of this stream of cash flows? If 12 percent is the discount rate, what is the present value of the...