You can choose between the following rent payments a. a lump sum of cash payment of...
You can choose between the following rent payments
a. a lump sum of cash payment of $100,000;
b. 10 annual payments of $12,000 each, the first occurring immediately.
c. 120 monthly payments of $1,200 each, the first occurring immediately.
Which rental payment scheme would you choose if the interest rate is 6% per year?
Homework Answers
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You can choose between the following rent payments
a. a lump sum of cash payment of...
You can choose between the following rent payments; you are the tenant in the apartment: a. A...
You can choose between the following rent payments; you are the tenant in the apartment: a. A lump sum cash payment of $12,500; b. 12 monthly payments of $1,100 each, the first occurring at the end of the month Which rental payment scheme would you choose if the interest rate was 5% APR with monthly compounding? What is the difference between the two options in today's dollars? Select one: a. A is better, difference =486.22 b. B is better, difference =486.22 c....
Suppose you win a 100 million lottery and you can choose the following two payment options:...
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You are due to receive a lump-sum payment of $1,750 in three years and an additional lump-sum payment of $1,850 in five years. Assuming a discount rate of 3.0 percent interest, what would be the value of the payments today?
REQUIRED LUMP SUM PAYMENT Starting next year, you will need $5,000 annually for 4 years to...
REQUIRED LUMP SUM PAYMENT Starting next year, you will need $5,000 annually for 4 years to complete your education. (One year from today you will withdraw the first $5,000.) Your uncle deposits an amount today in a bank paying 5% annual interest, which will provide the needed $5,000 payments. How large must the deposit be? Round your answer to the nearest cent. $ How much will be in the account immediately after you make the first withdrawal? Round your answer...
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Practice: Lottery Winner - Lump Sum or Annual Payments? A 26-year-old hairdresser is celebrating after what she thought was a $1,000 winning lottery ticket turned out to be worth a staggering $1.3 million.* lt was only when she traveled to the California Lottery Van Nuys District Office on December 26 that she found out she had actually won $1,000 per week for 25 years - a total of $1.3 million (She)... has reportedly arranged to meet a financial adviser to...
Question 4 You inherit $554,000. You can receive the $554,000 in one lump sum payment today...
Question 4 You inherit $554,000. You can receive the $554,000 in one lump sum payment today or, alternatively, receive two amounts: $354,000 in 11 months and $220,000 in 21 months from today. If you can earn 5.7% per annum compounding monthly on your monies, what is the value of the option to receive two payments (in present day value)? (to nearest whole dollar,; don’t use $ sign or commas)
Please choose one answer A,B,C, or D thank you A bank is negotiating a loan. The...
Please choose one answer A,B,C, or D thank you
A bank is negotiating a loan. The loan can either be paid off as a lump sum of $100,000 at the end of five years, or as equal annual payments at the end of each of the next five years. If the interest rate on the loan is 8%, what annual payments should be made so that both forms of payment are equivalent? OA. $17,046 OB. $23,864 OC. $13,637 OD, $27,274
28-8: Future Value of an Ordinary Annuity Problem 28-24 Required Lump-Sum Payment To complete your last...
28-8: Future Value of an Ordinary Annuity Problem 28-24 Required Lump-Sum Payment To complete your last year in business school and then go through law school, you will need $5,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $5,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 7.08% interest a sum of money that is sufficient to provide the...
If an annuity can make an unending number of equal payments at the end of the...
If an annuity can make an unending number of equal payments at
the end of the interest periods, it is called a
perpetuity. If a lump sum investment of
An is needed to result in n periodic
payments of R when the interest rate per period is
i, then
(a) Evaluate lim n→∞
An to find a
formula for the lump sum payment for a perpetuity.
(b) Find the lump sum investment needed to make payments of $90 per
month...
A total of $80,000 is borrowed and repaid with 72 monthly payments, with the first payment...
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Practice: Lottery Winner - Lump Sum or Annual Payments? A 26-year-old hairdresser is celebrating after what she thought was a $1,000 winning lottery ticket turned out to be worth a staggering $1.3 million.* lt was only when she traveled to the California Lottery Van Nuys District Office on December 26 that she found out she had actually won $1,000 per week for 25 years - a total of $1.3 million (She)... has reportedly arranged to meet a financial adviser to...
Please choose one answer A,B,C, or D thank you
A bank is negotiating a loan. The loan can either be paid off as a lump sum of $100,000 at the end of five years, or as equal annual payments at the end of each of the next five years. If the interest rate on the loan is 8%, what annual payments should be made so that both forms of payment are equivalent? OA. $17,046 OB. $23,864 OC. $13,637 OD, $27,274
28-8: Future Value of an Ordinary Annuity Problem 28-24 Required Lump-Sum Payment To complete your last year in business school and then go through law school, you will need $5,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $5,000 one year from today). Your uncle offers to put you through school, and he will deposit in a bank paying 7.08% interest a sum of money that is sufficient to provide the...
If an annuity can make an unending number of equal payments at
the end of the interest periods, it is called a
perpetuity. If a lump sum investment of
An is needed to result in n periodic
payments of R when the interest rate per period is
i, then
(a) Evaluate lim n→∞
An to find a
formula for the lump sum payment for a perpetuity.
(b) Find the lump sum investment needed to make payments of $90 per
month...
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