Present Value Calculation
John is looking at several options to fund his son’s 4-year university degree.
The university fees of $45,000 a year will have be paid starting 11 years from today. He is analysing an insurance plan that pays out $45,000 a year for 4 years with the first payout 11 years from today. The insurance plan has several payment options:
Option 1 Pay $60,000 today.
Option 2 Beginning 1 year from today, pay $12,000 a year for the next 8 years. Option 3 Beginning 1 year from today, make payments each year for the next 8 years. The first payment is $11,000 and the amount increases by 5% each year.
Calculate the present value of each option. Use a 10% discount rate.
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Present Value
John is looking at several options to fund his son’s 4-year university degree. The university fees of $45,000 a year will have be paid starting 11 years from today. He is analysing an insurance plan that pays out $45,000 a year for 4 years with the first payout 11 years from today. The insurance plan has several payment options: Option 1 Pay $60,000 today. Option 2 Beginning 1 year from today, pay $12,000 a year for the next 8 years. Option 3 Beginning...
John is looking at several options to fund his son's 4-year university degree. The university fees...
John is looking at several options to fund his son's 4-year university degree. The university fees of $45,000 a year will have be paid starting 11 years from today. He is analysing an insurance plan that pays out $45,000 a year for 4 years with the first payout 11 years from today. The insurance plan has several payment options: Option 1 Pay $60,000 today. Option 2 Beginning 1 year from today, pay $12,000 a year for the next 8 years....
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hello. i need some help in this. Name: Calculation of Present Value of a Lump Sum...
hello. i need some help in this.
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John is looking at several options to fund his son's 4-year university degree. The university fees of $45,000 a year will have be paid starting 11 years from today. He is analysing an insurance plan that pays out $45,000 a year for 4 years with the first payout 11 years from today. The insurance plan has several payment options: Option 1 Pay $60,000 today. Option 2 Beginning 1 year from today, pay $12,000 a year for the next 8 years....
Present value. Prestigious University is offering a new admission and tuition payment plan for all alumni. On the birth of a child, parents can guarantee admission to Prestigious if they pay the first year's tuition. The university will pay an annual rate of return of 6% on the deposited tuit on, and a full re und will be available fthe child chooses another university. The tuition is expected to be $22,000 a year at Prestigious 19 years from now. What...
Present value. Prestigious University is offering a new adr Prest gous f they pay the first years tuition. The university will pay an annual rate of return of 5 5% on the deposited tution, and a full refund will be all the child chooses another university. The tuition is expected to be $14,000 a year at Prestigious 20 years from now. What would parents pay today if they just gave birth to a new baby and the child will attend...
Analyze the following scenarlos that will require you to compute elther the present value, future value, and/or the a payment amount. Indicate the inputs that you will use to perform your analyses in the spaces provided. Perform your calculation in the space provided for that amount. For example, if you need to compute that present value, present that calculation in the PV space. You recelved a surprise notification from an attorney that you are the beneficlary of a payout from...
hello. i need some help in this.
Name: Calculation of Present Value of a Lump Sum You have been offered a security investment such as a bond that will pay you Php 10,000 at the end of 6 years in exchange for a fixed payment today, the appropriate annual interest rate on the investment is 12% compounded annually, what is the present value of the investment? Calculation of Future Value of a Lump Sum You plan to invest Php 10,000...
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