Problem 5-9 Present Value of a Perpetuity (LG5-5) What's the present value, when interest rates are...

Question

Question

Answer 1

Answer #1

Problem 5-9

Answer:
Present value=annual cash flow/interest rate

=90/8.5%

=1058.82

the above is answer..

We do only one question as HOMEWORKLIB rule

Answer 2

Similar Homework Help Questions

Problem 5-27 Present Value of a Perpetuity (LG5-5) A perpetuity pays $220 per year and interest...

Problem 5-27 Present Value of a Perpetuity (LG5-5) A perpetuity pays $220 per year and interest rates are 7.3 percent. How much would its value change if Interest rates increased to 8.8 percent? (Round your answer to 2 decimal places.) Change in value Did the value increase or decrease? increase O decrease Problem 4 and 5-7 House Appreciation and Mortgage Payments Say that you purchase a house for $272,000 by getting a mortgage for $240,000 and paying a $32,000 down...
Problem 5-10 Present Value of a Perpetuity (LG5-5) What's the present value, when interest rates are...

Problem 5-10 Present Value of a Perpetuity (LG5-5) What's the present value, when interest rates are 75 percent of a $215 payment made every year forever? (Round your answer decimal places.) Present value
Saved Problem 5-10 Present Value of a Perpetuity (LG5-5) What's the present value, when interest rates...

Saved Problem 5-10 Present Value of a Perpetuity (LG5-5) What's the present value, when interest rates are 8.5 percent, of a $240 payment made every year forever? (Round your answer to 2 decimal places.) Present value

helpProblem 5-1 Future Value (LG5-1) 25 Compute the future value in year 7 of a...

Problem 5-1 Future Value (LG5-1) Compute the future value in year 7 of a $2,200 deposit in year 1, and another $1700 deposit at the end of year 4 using a 8 percent interest rate (Do not round intermediate calculations and round your final answer to 2 decimal places.) Problem 4 and 5-6 Present Value and Annuity Payments A local furniture store is advertising a deal in which you buy a $4,200 living room set with three years before you need to make...
Problem 5-5 Present Value (LG5-3) Compute the present value of a $3,100 deposit in year 3,...

Problem 5-5 Present Value (LG5-3) Compute the present value of a $3,100 deposit in year 3, and another $2,600 deposit at the end of year 5 if interest rates are 8 percent (Do not round Intermediate calculations and round your final answer to 2 decimal places.) Present value
i need help anyone Problem 4-14 Present Value with Different Discount Rates (LG4-4) Compute the present...

i need help anyone Problem 4-14 Present Value with Different Discount Rates (LG4-4) Compute the present value of $4,700 paid in two years using the following discount rates: 9 percent in the first year, and 8 percent in the second year. (Do not round Intermediate calculations. Round your answer to 2 decimal places.) points Present value Problem 5-19 Future Value of Multiple Annuities (LG5-2) Assume that you contribute $320 per month to a retirement plan for 20 years. Then you...

Problem 5-5 Present Value (LG5-3) Compute the present value of a $2,500 deposit in year 3,...

Problem 5-5 Present Value (LG5-3) Compute the present value of a $2,500 deposit in year 3, and another $2,000 deposit at the end of year 5 if interest rates are 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Problem 5-25 Present Value (LG5-4) You are looking to buy a car. You can afford $390...

Problem 5-25 Present Value (LG5-4) You are looking to buy a car. You can afford $390 in monthly payments for four years. In addition to the loan, you can make a $1,600 down payment. If interest rates are 8.50 percent APR, what price of car can you afford (loan plus down payment)? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value
Problem 5-27 Present Value of a Perpetuity (LG5-5) A perpetuity pays $130 per year and interest...

Problem 5-27 Present Value of a Perpetuity (LG5-5) A perpetuity pays $130 per year and interest rates are 7.8 percent. How much would its value change if interest rates increased to 9.3 percent? (Round your answer to 2 decimal places.) Change in valueſ Did the value increase or decrease? decrease increase

Problem 4-35 Solving for Rates (LG4-7) 25 You invested $2,000 in the stock market one year...

Problem 4-35 Solving for Rates (LG4-7) 25 You invested $2,000 in the stock market one year ago. Today, the investment is valued at $1700 points What return did you earn? (Negative answer should be indicated by a minus sign) Bock Retur eamed Berences What return would you need to get next year to break even overall? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Retum eamed LMR my Problem 4-32 Solving for Time (LG4-8) 2.5 points...