If the value of the annual payment is $34,059.92, calculate the present value of a life annuity payable to a 54-year-old woman, if the rate is 4.5% per year, considering from the mortality tables that N55 = 127,744 and if D54 = 8701.9
Q: Jordan has $6000 to invest in an annuity from which he plans to make regular withdrawals over the…
A: Amount invested is $6000 term is 3 years
Q: to settle a debt of 40000, Mrs santiago will pay quarterly for 7 years at 14% compounded quarterly.…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: During a software project Earned Value. Analysis is performed and gives the following results EV:…
A: An earned value analysis of the project is performed by the managers so that the managers can…
Q: How old will Matthew be? Matthew will be years old. (Round to the nearest year as needed.)
A: Annuity Payments: These are periodic and regular payments and assist in computing either the…
Q: Consider the following investment project. Calculate the net future worth of this investment at 11%…
A: Solution:- Net future worth means the net future value of a project after adjusting initial…
Q: Ahmed has a right to buy a security at a specific price on a specific date if he sold a futures…
A: A call option is the contract between two persons, one is buyer and another is seller, There is a…
Q: has a right to buy a security at a specific price on a specific date if he_____on this security: O…
A: The options gives the holder of option right to sell or buy the stock on specific price and on…
Q: You buy a stock for $44 per share and sell it for $54 after holding it for slightly over a year and…
A: The question is related Holding period return. Holding period return is calculated with the help of…
Q: requires a repayment of $6 million in three years? What is the yield to maturity of a bond you buy…
A: Yield to maturity is rate of return realized when bond is held till the maturity of bond and equate…
Q: The disposition effect: a. Is the tendency of stock investors to sell their winning stocks and…
A: In finance disposition effect is related to behavioral finance. Disposition effect refers to the…
Q: One-year Treasury bill rates over the next five years are expected to be 5%, 6%, 7%, 8%,and 9%. The…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Design Interiors has a cost of equity of 14.9 percent and a pretax cost of debt of 8.6 percent. The…
A: Here, Cost of equity = 14.9% Pretax cost of debt = 8.6% Weighted average cost of capital of the firm…
Q: To pay its supplier, Tokyo Corporation requires P300,000. The bank of Tokyo Corporation offers a…
A: Compensating balance Sometimes it is required at bank to keep a deposit of funds to qualify for the…
Q: Savings Calculator Starting Amount $20000 Annual Contribution $5000 for 5 years increase 3 %/year…
A: Data given: Starting amount =$20000 Annual contribution=$5000 N= 5 years Increase in contribution…
Q: (Related to Checkpoint 6.5) (Present value of a growing perpetuity) What is the present value…
A: Year one cash flow = $2500 Growth rate = 0.02 Discount rate = 0.13 Discount rate = 0.11 Present…
Q: ANNUITY. If P10,000 is deposited each year for 9 years, how much annuity can a person get…
A: This problem can be solved in light of present and future value of annuity. The present value of…
Q: Alma has used the estimates provided by Dan to determine the revenues that could be expected from…
A: The payback period is a measure of how long it for the cash flows to cover the initial investment.…
Q: Assuming a mild preference for shorter-term bonds, the liquidity premium theory suggests that a flat…
A: Liquidity premium theory states that the investors should get an extra incentive for taking the risk…
Q: What is the CW, when i = 10% per year, of $1,500 per year, starting in year one and continuing…
A: This problem can be solved in light of present value of perpetuity and future value of annuity. The…
Q: A firm's stock has a required return of 9.00%. The stock's dividend yield (using the dividend to be…
A: Required rate of return = 9.00% Stock price = $34 Dividend yield = 5.00% Next dividend = Stock…
Q: A portfolio manager has positions that include a £100,000 investment in A Corp and a £75,000…
A: Portfolio standard deviation In a two asset portfolio, the standard deviation of the portfolio is…
Q: (C) US Bank is considering investing in a three years' project in Europe country. The project would…
A: In this question, we have to calculate the NPV of the given project. NPV is the present value of all…
Q: A company currently has an EPS of $5.28 and an annual earnings growth rate of 8.2%. If the…
A: All the present cash flows are compounded sequentially till the future time using the rate in order…
Q: 2. Compare the following alternatives, using (i) the Net Present Value method. The MARR is 13.32%…
A: Here we will use the capital budgeting tool of NPV (net present value). The tool of NPV is based on…
Q: A two-share portfolio held by an institutional investor has the following information: Years (t)…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Beginning in January, a person plans to deposit $1000 at the end of each month into an account…
A: The concept of the time value of money states that the same amount of money has more value today…
Q: What is your yield to maturity on the bond given the market price of the bonds?
A: Yield To Maturity: It is the total expected rate of return for the bondholder given all the coupon…
Q: shareholders' claims on assets and income of a firm come_____ those of creditors _______those of…
A: Preferred shares have fixed dividend payments that are to be paid by company. Preferred share…
Q: What is the future value of $3,078 invested for 8 years at 6 percent compounded annually? Multiple…
A: Time value of money (TVM) concept refers to the method used to measure the value of money at…
Q: What is the advisable investment plan in the Philippines that will increase the value of an…
A: Philippines is a country in Asia. One can invest in a variety of financial instruments and…
Q: If MARR is 12% fer year, compare the ternatives shown below -> Present worth Method. Alternative I…
A: We will use a 12% rate and will calculate the present worth by applying the formula for both…
Q: Calculation of individual costs and WACC Dillon Labs has asked its financial manager to measure the…
A: Given, A capital structure that has debt, preferred stock and common stock
Q: Bagi company is private and wants to go public, before it go public thus joining the Ghana Stock…
A: Private Company section- 2(68) AMMENDMENT ACT ,2015 A private company is a company having minimum…
Q: Best Ever Results Inc. has a project under consideration with the following estimated cash flows:…
A: The net present value method is used to find out the profitability of a project by adding up…
Q: A company's current stock price is $50 per share, while investors' required return is 12.00%. If the…
A: Here we will use the dividend discount model. As per the dividend discount model the value of a…
Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…
A: This is a time value of money concept based question. There is a quantum of funds required for…
Q: If money earns 5.22% compounded quarterly, what single payment in two years would be equivalent to a…
A: The time value of money is a concept that is applied while computing the present worth of the money…
Q: Tokyo Corporation must pay its supplier P500,000. Tokyo Corp's bank has advertised a 270-day loan…
A: Compensating Balance: Compensating balance means the amount that a borrower deposits in the…
Q: For how long can you withdraw $500.00 at the end of each month out of a fund of $10,000 deposited…
A: Present Value of Deferred Annuity refers to the concept which dictates the discounted value of a sum…
Q: 2. Suppose that three stocks (A, B, and C) and two common systematic risk factors (1 and 2) have the…
A: Expected Return on stock :The expected return is the profit or loss that an investor expects or…
Q: he difference between the bank customer relationship in conventional bank loan and a Murabaha…
A: Customer relationship are very important and even in the Islamic banking but there are some…
Q: A P100,000, 10% bond pays dividend every quarter for 8 years. The bond is priced at par and is…
A: The par value of bond us P100,000 Number of years to maturity 8 years
Q: Match the following ✓ A premium over and above the risk-free rate. A. Financial Leverage ✓ The…
A: Answer - Match the Following : Particulars A premium over and above the risk free rate C.…
Q: 2. Suppose Miss Roxanne Davenport is 25 years old right now and puts away $1,800 per quarter in an…
A: As per the information provided: Age of Miss Roxanne Davenport - 25 years Investment in an account -…
Q: 3. $100 compounded annually for two years at 3% interest would provide the investor with how much of…
A: The time value of money concept is used to determine the interest and total amount of return…
Q: a barbeque is listed for $700.48 less 48% , 18% and 6%
A: This is a case of successive discounts. Successive discounts means discount on discount. In other…
Q: A project will have annual operating cash flows of $36,500 for four years. At the beginning of the…
A: Net Present Value (NPV) = Present Value of Cash Inflows - Initial Investment
Q: The following information on the performance of three funds A, B and C in Australia. Calculate the…
A: Coefficient of variation=Standard deviation/Expected or average return Coefficient of…
Q: Johan wants to buy a car on hire purchase for N$49000 at the rate of 12% p.a. repayable using…
A: Payment of loan installments are based on the concept of compounding and time value of money. Here…
Q: Figure 2 shows the payments and revenues of a small project. If M.R.R.R= % 12, Evaluate the project…
A: Given cashflows of a project. We have to calculate the annual worth of the project. Annual worth is…
If the value of the annual payment is $34,059.92, calculate the present value of a life
Step by step
Solved in 2 steps
- Suppose a man retires at age 65, and in addition to Social Security, he needs $2200 per month in income. Based on an expected lifetime of 204 more months, how much would he have to invest in a life income annuity earning 4% APR to pay that much per year? (Round your answer to two decimal places.)A policyholder wishes to annuitize the cash value of her insurance policy at retirement. She desires an annual payment of $97.8,000 per year and the cash value is expected to be $1.5 million at retirement. Approximately how many payments can she expect to receive if annuity interest rates are 5.739 percent? (Do not round intermediate calculations. Round your answer to a whole number.)Carla Lopez deposits $5, 200 a year into her retirement account. If these funds have an average eaning of 6 percent over the 40 years until her retirement, what will be the value of her retirement account?
- The terms of a single parent's will indicate that a child will receive an ordinary annuity of $15,000 per year from age 18 to age 24 (so that the child can attend college) and that the balance of the estate goes to a niece. If the parent dies on the child's 13th birthday, how much money must be removed from the estate to purchase the annuity? (Assume an interest rate of 9%, compounded annually. Round your answer to the nearest cent.)Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?Ms. Anna Ang, aged 39, recently purchased an endowment plan from an insurer that requires her to set aside $24,000 per year for the next 23 years till she retires at age 62. The first premium payment occurs at the beginning of the period. Assuming an inflation rate of 2% and an estimated rate of return of 4.0% from the endowment plan, what is the estimated future value of Anna’s regular savings at age 62?
- For a special 20-year temporary life annuity-due payable monthly on (50), you are given: - Mortality follows the Illustrative Life Table with ? = 0.06. - Deaths are uniformly distributed over each year of age. - 100 is payable at the beginning of each month from age 50 for 10 years. - 400 is payable at the beginning of each month from age 60 for 10 years. Calculate the expected present value of these annuity payments.Susan Co expects to receive P20,940 at the beginning of each period per year in Social Security payments. Assume that she receives these payments for 28 years and use a rate of 6% per year. Find the present value of her retirement payments.A person has an individual retirement account that they contribute | . $2,150 to annually at the end of each year. The person wants to retire after making 35 annual contributions to the account. Assuming that the account earns 12% interest annually, using the Future Value of an Annuity of 1 table, compute the value of the account on the date of the final contribution (35 years from the present).
- At the beginning of each period for 11 years, Merl Agnes invests $410 semiannually at 4%. What is the cash value of this annuity due at the end of year 11? (Do not round intermediate calculations. Round your answer to the nearest cent.The beneficiary of a life insurance policy is to receive $2000 a year for 5 years, the first payment to be made at the time of the death of the injured. Find the value of the annuity at the time of death of injured, assuming the current interest rate to be 4%. Answer: $9259.8To help with her retirement savings, Isabel invests in an ordinary annuity that earns 5.4% interest, compounded quarterly. Payments will be made at the end of each quarter. How much money does she need to pay into the annuity each quarter for the annuity to have a total value of 96,000 pesos after 19 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
