Compute the present value of the various annuities

Assignment Help Finance Basics
Reference no: EM1313820

Compute the Present value of the various annuities

Suppose you are to receive a stream of annual payments (also called an "annuity") of $3000 every year for three years starting this year. The interest rate is 3%. What is the present value of these three payments?

Reference no: EM1313820

Questions Cloud

Inflation and output ratio : Suppose that natural real GDP is constant.  For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
Applications of several observational study designs : Applications of Different Observational Study Designs' indicating for every objective under pertinent study design.
Computation of free cash flow : Computation of free cash flow and Given the following financial statements for ACME Corporation, what is the company's free cash flow for 2004?
Graphing the short run philips curve : Suppose that natural real GDP is constant.  For every 1 percent increase in the rate of inflation above its expected level, firms are willing to increase real GDP by 2 percent.
Compute the present value of the various annuities : Compute the Present value of the various annuities and suppose you are to receive a stream of annual payments
Computation of cash flow from financing activities : Computation of cash flow from financing activities using given data and Given the following financial statements for ACME Corporation, and assuming that ACME paid a common dividend of $45,000 in 2004, what is the company\'s financing cash flow for ..
Creating the decision tree : Create the corresponding decision tree and make recommendations.
Advise johnny to demand from the record organization : Illustrate what is the marginal income for each 10,000 increase in the quantity sold. Illustrate what recording fee would you advise Johnny to demand from the record organization.
Computation of cash balance at the end : Computation of cash balance at the end using given data and Use the following information to calculate the change in the company's cash balance for the year

Reviews

Write a Review

Finance Basics Questions & Answers

  National newsmagazine publishes

National newsmagazine publishes the article on efforts to limiting smoking in public places.

  Calculation of irr, npv and analysis in decision making

Calculation of IRR, NPV and analysis in decision making and how can the use of Net Present Value assist in the measurement and evaluation of corporate projects to ensure that stakeholder interests are being met

  Computing npv of investment if marginal tax rate is given

Marginal tax rate is 35%, and suitable discount rate is 9%. Compute the NPV of this investment. Must this project be accepted or rejected?

  Computation of after tax rate of return on investment

Computation of after tax rate of return on investment Assume that federal taxes are not deductible against state taxes and vice versa

  Subsidiary corporation as well as calculation of income

Sale of Machinery to Subsidiary Corporation as well as Calculation of Income in Acquired Company

  Compution of ranges where increase and decrease in return

Compution of ranges where increase and decrease in return occurs and describe and show the point where diminishing returns occurs

  Various techniques of inventory management

An investor is thinking of investing in a recurring deposit scheme that offers an interest rate of 12% per annum

  Determining geometric average returns on stock

You have observed given returns on ABC's stocks over last 5 years: 3.8%, 9.9%, 10.1%, 11.9%, 3.2% determine geometric average returns on stock over this 5-year period.

  Computation of net present values

Computation of Net Present Values and Internal Rate of Returns and Cross Over rates to select among mutually exclusive projects based on cash flows and discounting rates

  Computation of the effective interest rate on the loan

Computation of the effective interest rate on the loan payable in due and in advance and calculate Interest is deducted in advance

  Discount rate for these computations

What do you believe is the suitable rate other than 8.00% to utilize as the discount rate for these computations.

  Computation of return on investment

Computation of return on investment and A company has calculated the following ratios for one of its investment centres

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd