4. A perpetuity paying $100 on the last day of each year was purchased on January 1, 2000. On Jan...
Homework Answers
rate convertible annually=((1+6%/12)^(12/1)-1)*1=6.17%
rate convertible semi-annually=((1+6%/12)^(12/2)-1)*2=6.08%
X/(6.08%/2)*(1-1/(1+6.08%/2)^(2*15))*(1+6.08%/2)=100/6.17%
=>X=100/6.17%*(6.08%/2)/(1-1/(1+6.08%/2)^(2*15))*1/(1+6.08%/2)
=>X=80.66513539
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4. A perpetuity paying $100 on the last day of each year was purchased on January 1, 2000. On Jan...
Math Interest Theory/ Financial Math Please Use Formulas 6. (3pts) A perpetuity paying 100 at the...
Math Interest Theory/ Financial Math
Please Use Formulas
6. (3pts) A perpetuity paying 100 at the end of each 4-month period has a present value of 5000. What is the present value of an annuity paying 100 at the end of every 3 year for 30 years, assuming the same effective interest rate? (Answer: 426.33) 7 (2nts) There is $10 000 in a fund which is c l etin 40/ -
Math Interest Theory/ Financial Math Please Use Formulas 1. (4pts) Find the present value, 2 years...
Math Interest Theory/ Financial Math
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1. (4pts) Find the present value, 2 years before the first payment is made, of an inheritance of twenty-year annuity, on which payments are $100 at the beginning of each quarterly year, assuming a nominal rate of interest of 6% convertible monthly, by (1) finding the equivalent interest rate convertible at the same frequency as payments. (2) using the formula ("Fission" method). (Answer: $4,169.15)
Craig borrows 6000 dollars a year to pay for college expenses, starting on September 1, 2000 - the day he starts college - and ending on September 1, 2004. (i.e. that's 5 withdrawals total). After...
Craig borrows 6000 dollars a
year to pay for college expenses, starting on September 1, 2000 -
the day he starts college - and ending on September 1, 2004. (i.e.
that's 5 withdrawals total). After graduation, he decides to go to
graduate school in mathematics, and his loans are deferred (i.e.
they still accrue interest, but no payments are due). After
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On January 1,the first day of the fiscal year, Murray Company issues a $1,000,000, 5%, five-year...
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c. $6,000 d. $30,000 18. Last year, TSU purchased a life annuity for $72,000. The annuity pays equal annual installments of $ 8,000 beginning January 1 of the current year. TSU's life expecta...
c. $6,000 d. $30,000 18. Last year, TSU purchased a life annuity for $72,000. The annuity pays equal annual installments of $ 8,000 beginning January 1 of the current year. TSU's life expectancy is 12 years. What is the taxable portion of each payment? a. $2000 b. $3000 c. $4000 d. I need more information
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Math Interest Theory/ Financial Math
Please Use Formulas
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Math Interest Theory/ Financial Math
Please Use Formulas
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Craig borrows 6000 dollars a
year to pay for college expenses, starting on September 1, 2000 -
the day he starts college - and ending on September 1, 2004. (i.e.
that's 5 withdrawals total). After graduation, he decides to go to
graduate school in mathematics, and his loans are deferred (i.e.
they still accrue interest, but no payments are due). After
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loans. He will make monthly payments for 7...
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