You are considering an annuity which costs $100,000 today. The annuity pays $8,000 a year at an annual interest rate of 5.5 percent. What is the length of the annuity time period?
Perpetuity
A)
You are considering an annuity which costs $100,000 today. The annuity pays $8,000 a year at an annual interest rate of 5.5 percent. What is the length of the annuity time period?
You are considering an investment that will pay you $75,000 semi-annually for 5 years. Assuming you require a minimum
Assuming a discount rate of 6%, what is the
Assuming a required return of 5.5%, how much would you be willing to pay for an investment that pays you and your heirs $50,000 per year in perpetuity?
What is the present value of $7,500 per year, at a discount rate of 8.5 percent, if the first payment is received 10 years from now and the last payment is received 25 years from now?
You have signed up for your 401k and will deposit $750 into your 401k when you are paid at the end of each month. If you earn a compound annual rate of return of 6%, how much will you have in 15 years?
What would your monthly car payment be if you financed a $35,000 car for 3 years at a rate of 6%?
The appropriate discount rate for the following cash flows is 12 percent compounded quarterly. What is the present value of the cash flows? Year 1 CF=700, Year 2 CF=600, Year 3 CF=0, Year 4 CF=1000
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