A deferred perpetuity that will make its first payment of $1m at the end of the...
A deferred perpetuity that will make its first payment of $1m at the end of the 10th year has a present value of $_______. Use 7.25% as the annual rate.
A. 6.8500m B. 7.3466m C. 7.1942m D. 6.923m
Homework Answers
![Value at time 9 = payment at 10 = rate = $13.79 m (1-7.25%] Present value = m $7.3466 [ 13.79 - 1.072549 ]](http://img.homeworklib.com/questions/c095a1e0-7706-11ec-b960-afc2cfa811dd.png?x-oss-process=image/resize,w_560)
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A deferred perpetuity that will make its first payment of $1m at
the end of the...
an increasing perpetuity immediate makes annual payments. the first payment is 100 and each subsequent payment...
an increasing perpetuity immediate makes annual payments. the first payment is 100 and each subsequent payment is larger than the preceding payment by an amount X. based on an annual effective interest rate of 10%, the present value of the perpetuity at time 0 is one half of its present value at time 20. what is rhe value of x?
3. (3 Marks) Determine the present value of a deferred perpetuity of $1000 per year if...
3. (3 Marks) Determine the present value of a deferred perpetuity of $1000 per year if the first payment is due at the end of six years. The interest rate is 12 = 4%
A perpetuity-due with varying annual payments is available. During the first five years the payment is...
A perpetuity-due with varying annual payments is available. During the first five years the payment is constant and equal to 40. Beginning in year 6, the payments start to increase. For year 6 and all future years the payment in that year is k% larger than the payment in the year immediately preceding that year. (k <6). At an annual effective interest rate of 6.7%, the perpetuity has a present value of 751.50. Calculate k.
QUESTION 6 John receives a perpetuity making payments using the following scheme: The first payment will...
QUESTION 6 John receives a perpetuity making payments using the following scheme: The first payment will be for 2 at the end of the 5" year The remaining payments will occur every three years, following the first payment Each subsequent payment will be X% larger than the previous payment The present value of this perpetuity at an annual effective interest rate of 10% is equal to 25. Calculate X. Give your answer rounded to two decimal places.
(5) Jason purchases a deferred perpetuity for $13,520. The perpetuity has quar- terly payments of $750....
(5) Jason purchases a deferred perpetuity for $13,520. The perpetuity has quar- terly payments of $750. Express the waiting time until the first payment as a function of the annual effective interest rate i
An n year deferred perpetuity due has the following payment pattern. 300; 100; 400; 300; 100;...
An n year deferred perpetuity due has the following payment pattern. 300; 100; 400; 300; 100; 400; 300; 100; 400; 300; 100; 400; :::: The perpetuity has a price of 694.5262387, and this price is based on an annual effective interest rate of 10%. The payments occur on an annual basis. Find n
It is January 1, 2019. Find the present value of a $100 perpetuity when the first...
It is January 1, 2019. Find the present value of a $100 perpetuity when the first payment is at the end of year 2019. The discount rate is 6%. It is January 1, 2019. Find the present value of a $100 perpetuity when the first payment is at the end of year 2020. The discount rate is 6%. It is January 1, 2019. Find the present value of a $100 growing perpetuity when the first payment is at the end...
22. An n year deferred perpetuity due has the following payment pattern 300, 100, 400, 300,...
22. An n year deferred perpetuity due has the following payment pattern 300, 100, 400, 300, 100, 400, 300, 100, 400, 300, 100, 400,.... The perpetuity has a price of 694.526 238 7. and this price is based on a annual effective interest rate of 10%. The payments occur on an annual Find n.
A perpetuity due makes annual payments which begin at $100 for the first year, then increase at 6% per year through the...
A perpetuity due makes annual payments which begin at $100 for the first year, then increase at 6% per year through the 10th year, and then remain level thereafter. Calculate the present value of this perpetuity, if the annual effective rate of interest is equal to 8%.
A perpetuity has annual payments. The first payment is for $330 and then payments increase by...
A perpetuity has annual payments. The first payment is for $330 and then payments increase by $10 each year until they become level at $600. Find the value of this perpetuity at the time of the first payment using an annual effective interest of 4%. (Round your answer to the nearest cent.)
3. (3 Marks) Determine the present value of a deferred perpetuity of $1000 per year if the first payment is due at the end of six years. The interest rate is 12 = 4%
A perpetuity-due with varying annual payments is available. During the first five years the payment is constant and equal to 40. Beginning in year 6, the payments start to increase. For year 6 and all future years the payment in that year is k% larger than the payment in the year immediately preceding that year. (k <6). At an annual effective interest rate of 6.7%, the perpetuity has a present value of 751.50. Calculate k.
QUESTION 6 John receives a perpetuity making payments using the following scheme: The first payment will be for 2 at the end of the 5" year The remaining payments will occur every three years, following the first payment Each subsequent payment will be X% larger than the previous payment The present value of this perpetuity at an annual effective interest rate of 10% is equal to 25. Calculate X. Give your answer rounded to two decimal places.
(5) Jason purchases a deferred perpetuity for $13,520. The perpetuity has quar- terly payments of $750. Express the waiting time until the first payment as a function of the annual effective interest rate i
22. An n year deferred perpetuity due has the following payment pattern 300, 100, 400, 300, 100, 400, 300, 100, 400, 300, 100, 400,.... The perpetuity has a price of 694.526 238 7. and this price is based on a annual effective interest rate of 10%. The payments occur on an annual Find n.
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