Future fund value of an ordinary annuity

Assignment Help Finance Basics
Reference no: EM1364451

What does it mean if the investment sales literature states that the future fund value of an ordinary annuity is determined using the simple interest formula method? Explain what this means and also illustrate this by devising a calculation. (Assume that you have 20 years until you retire).
What is the difference of a between an ordinary annuity and an annuity due? Compare the annuity due to the money you invested in the ordinary annuity. Illustrate this by devising a calculation. (Assume that you have 20 years until you retire). (Use the variables you created for the simple interest formula method).
Using a formula, calculate the present value of this ordinary annuity.

Reference no: EM1364451

Questions Cloud

Calculate the after tax cost : Compute the after tax cost of a $25 million debt issue that Pullman Manufacturing Corporation is considering to place privately with a large insurance company.
Describe coefficient of correlation the two variables : Describe the coefficient of correlation between the two variables. Interpret the value. Is it reasonable to conclude that there is a positive relationship between revenue and occupied rooms.
Preparing cost of goods manufactured : Prepare a schedule of cost of goods manufactured for Fido Treats for the year ended December 31, 2012. Prepare an income statement for Fido Treats for the year ended December 31, 2012.
First aid-tornado : It is late Saturday afternoon, and you have been so busy doing household chores you have barely noticed the thunderstorm moving in from the west. You glance out a window and see the sky is turning black.
Future fund value of an ordinary annuity : Determine its mean if the investment sales literature states that the future fund value of an ordinary annuity is determined using the simple interest formula method?
Explain ethical when an employer decides to penalize : Explain ethical when an employer decides to penalize employees who eat their favorite junk foods and gain weight or smoke cigarettes
Briefly describe the principle of reframing and its value : Briefly explain the principle of reframing and critically assess the value of the modern manager.
Elucidate why situation is unlikely to be pareto efficient : Set up an Edgeworth Box to depict this situation and elucidate why the situation is unlikely to be Pareto efficient.
What is the charge distribution : The magnitude of vector vector A is 31.6 units and points in the direction 321° counterclockwise from the positive x-axis. find out the x-component of this vector.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculating annual payment of mortgage

You're thinking of purchasing a house. The house costs $350,000. You have $50,000 in cash which you can use as a down payment on house, but you need to borrow the rest of purchase price.

  Computing of bond''s price coupon rate must the bond offer

Computing of bond's price coupon rate must the bond offer and If circular file wants to issues a new 6-year bond at face value

  Computation of break even points

Computation of break even points - What would the breakeven volume be at this new selling price?

  Explain market structures of pure competition

Discuss and explain the four market structures of pure competition, pure monopoly, monopolistic competition, and oligopoly.

  Determine the effective rate on bank loan

Bosworth Petroleum requires $500,000 to take a cash discount of 2/10 net 70. A banker will land money for sixty days at an interest cost of $8,100.

  Construct a bond amortization table

Watson Bottle Corporation sold $400,000 in long-term bonds for $351,040. The bonds will mature in ten years and have a stated interest rate of 8% and a yield rate of 10 percent.

  Find the price for imm

Underwood Industries just paid a dividend of $1.45 each share. The dividends are expected to grow at 25 percent rate for the next eight years and then level off to a 7 percent growth rate indefinitely.

  Decision making on the basis of expected return

Decision making on the basis of expected return and volatility of project and Suppose you have two good projects in which you could invest

  Determine the cost function for manchester

Manchester Foundry produced 45,000 tons of steel in March at a cost of £1,150,000. In April, the foundry produced 35,000 tons at a cost of £950,000.

  Find the current cost of valve

Rex manufacturing produces a line of equipment with a European servo value that cost $100 when the Euro was 83 cents. Now that the Euro is $1.59 cents the component is a problem.

  Discuss the benefits and costs of education

At Takoma Park University, they offer a multitude of courses each quarter. The students pay $1,200 each course. However, Dean Dong realizes that the tuition needs to be increased because of increasing costs.

  Computing npv if discount rate is given

Briarcrest Condiments is spice-making firm. Newly, it developed new process for producing spices. Compute the NPV if discount rate is 13.74%?

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