what is the present value of a 3 year growing annuity with the first payment of...
Homework Answers
| Year | annuities | cash flow | PV factor @ 10% | present value |
| 1 | 1 | $2400 | 0.90909 | $2181.82 |
| 2 | 2 | $2472 | 0.82645 | $2042.98 |
| 3 | 3 | $2546.16 | 0.75131 | $1912.97 |
| Present value of the annuity | $6137.76 |
Add Answer to:
what is the present value of a 3 year growing annuity with the
first payment of...
The PV of a 8 annual-payment growing annuity is $89,719.63. The first payment of the growing...
The PV of a 8 annual-payment growing annuity is $89,719.63. The first payment of the growing annuity is $12,000 due one year from now. Subsequent annual payments are expected to grow at an annual rate identical to the effective annual interest rate. What is the annual growth rate?
Assume a 10% annual interest rate. (i) What is the present value of a 25 year, $900 annuity if the first payment does not occur until 7 years from today? (ii) What would be the present value of a perp...
Assume a 10% annual interest rate. (i) What is the present value of a 25 year, $900 annuity if the first payment does not occur until 7 years from today? (ii) What would be the present value of a perpetuity with the same characteristics ($900, first payment in 7 six years).
(Present value of annuity payments) The state lottery's million-dollar payout provides for $1 million to be...
(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...
a. What is the present value of a 3-year annuity of $190 if the discount rate...
a. What is the present value of a 3-year annuity of $190 if the discount rate is 6%? b. What is the present value of the annuity in (a) if you have to wait an additional year for the first payment? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
8.What is the present value of the deferred annuity if the regular payment is P50,000.00 every...
8.What is the present value of the deferred annuity if the regular payment is P50,000.00 every year, the interest rate is 2.5% compounded annually, with an actual payments of 20, and the period of deferral is 30? 9.What is the present value of the deferred annuity if the regular payment is P5,000.00 every month, the interest rate is 7% compounded monthly, with an actual payments of 15, and the period of deferral is 5? 10.What is the present value of...
Present value of annuity payments) The state lottery's million-dollar payout provides for $1.1 million to be...
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 $1.4 million to be...
(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...
(Present value of annuity payments) The state lottery's million-dollar payout provides for $1.4 million to be...
(Present value of annuity payments) The state lottery's million-dollar payout provides for $1.4 million to be paid in 25 installments of $56 comma 000 per payment. The first $56 comma 000 payment is made immediately, and the 24 remaining $56 comma 000 payments occur at the end of each of the next 24 years. If 11 percent is the discount rate, what is the present value of this stream of cash flows? If 22 percent is the discount rate, what...
(Present value of annuity payments) The state lottery's million-dollar payout provides for $1 million to be...
(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...
(Present value of annuity payments) The state lottery's million-dollar payout provides for $1.5 million to be...
(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...
8.What is the present value of the deferred annuity if the regular payment is P50,000.00 every year, the interest rate is 2.5% compounded annually, with an actual payments of 20, and the period of deferral is 30? 9.What is the present value of the deferred annuity if the regular payment is P5,000.00 every month, the interest rate is 7% compounded monthly, with an actual payments of 15, and the period of deferral is 5? 10.What is the present value of...
Most questions answered within 3 hours.
-
Use the following set of observed frequencies to test the
independence of the two variables. Variable...
asked 15 minutes ago -
Two kg of ice at -15 °C are placed in a 2 kg bath of water...
asked 15 minutes ago -
Describe the following with suitable
examples.
1- Security Policy Heterogeneity
2-Security Model Heterogeneity
3-Security Mechanism Heterogeneity...
asked 16 minutes ago -
Please Identify the Term "Determinism" in Psychology
asked 14 minutes ago -
The table below represents the number of republicans, democrats
and independent voting on a specific issue....
asked 20 minutes ago -
List and compare different forms of passive transport and active
transport.
asked 28 minutes ago -
In Netherland Dwarf rabbits, dwarf size is determined by allele
N, and normal-size by allele n....
asked 34 minutes ago -
During Heaton Company’s first two years of operations, it
reported absorption costing net operating income as...
asked 48 minutes ago -
Consider testing the
hypotheses:
H0: p = 0.56
H1: p > 0.56
where p is
the...
asked 52 minutes ago -
In a two-factor analysis of variance a main effect is defined as
____.
a. the unique...
asked 59 minutes ago -
A bank's loan officer rates applicants for credit. The ratings
are normally distributed with a mean...
asked 1 hour ago -
Fill in the following information for Adipic Acid: molecular
weight, g or ml, mole, melting point,...
asked 1 hour ago