How much would it cost him to buy the annuity today

Assignment Help Finance Basics
Reference no: EM13287554

Your uncle is about to retire, and he wants to buy an annuity that will provide him with $73,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?

Reference no: EM13287554

Questions Cloud

Explain carbon dioxide makes up approximately : Carbon dioxide makes up approximately 0.04% of Earth's atmosphere. If you collect a 2.8 sample from the atmosphere at sea level (1.00 ) on a warm day (28), how many molecules are in your sample
Find point on y-axis where electric field intensity is zero : An infinitly long line charge (ρl = 2lπ nC/m)lies along the z-axis. An infinite area sheet charge(ρs= 3 nC/m2 lies in the x-z planeat y = 10m. Find a point on the y-axis where the electric field intensity is zero.
What would the annual interest rate from the company : A payday loan company charges 4 percent interest for a two week period. What would the annual interest rate from the company.
Calculate the average velocity of the plane : The first controlled, sustained flight in a heavier-than-air craft was made by Orville Wright on December 17, 1903. Calculate the average velocity of the plane
How much would it cost him to buy the annuity today : Your uncle is about to retire, and he wants to buy an annuity that will provide him with $73,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy..
Define how many grams of neon are in the sign : If the sign contains neon at a pressure of 1.78 at 38, how many grams of neon are in the sign
What will the firm operating profit : If a firm has a break-even point of 40,000 units and the contribution margin on the firm's single product is $4.00 per unit and fixed costs are $60,000, what will the firm's operating profit be at sales of 40,000 units?
What is min source voltage that can produce electric shock : A person accidentally grabs conductors connected to each endof a dc voltage source, one in each hand.(a) Using  the resistance values for human body provided inprevious problem, what is the minimum source voltage that canproduce electrical shock s..
How far did you drive : You are driving in one direction on a long straight road. You drive in the positive direction at 126 km/h for 30.0 minutes, How far did you drive

Reviews

Write a Review

Finance Basics Questions & Answers

  What makes quantitative analysis of country risk challenging

What makes the quantitative analysis of country risk challenging?

  Determine effective annual rate of interest

The corporation you work for will deposit $600 at the end of each month in your retirement fund. Interest is compounded monthly. You plan to retire fifteen years from now and estimate that you will need $2000 each month out of the account for the nex..

  What is the standard deviation of the net income estimate

The forecast for your firm indicates there's a 25% chance that Net Income will be $15,000, a 50% chance it will be $20,000, and a 25% chance it will be $25,000.

  Would recipient be as well off under the housing voucher

Would this recipient be as well off under the housing voucher scheme as he would be with a cash transfer of equal value?

  Compute the disbursement float

If Clearwater Glass has an opportunity cost equal to 10 percent, how much would it be willing to spend each year to reduce collection delay (float) by two days?

  What is the maximum net benefit you can achieve

The cost to perform tasks increases with the number of tasks you perform. The first task costs you $6 to perform and increases by $3 thereafter, i.e., the second task costs $9. What is the maximum net benefit you can achieve?

  Cost of retained earnings based on discounted cash flow

Evaluate cost of equity, cost of retained earnings based on discounted cash flow, C A P M and Bond cost plus premium methods.

  Describe diversification mean

Diversification is assumed to reduce risks. Describe diversification mean in the context of corporate finance, and how does it reduce risks in that context?

  Calculate the current market value of the factory

A factory will generate an expected cash flow of $650,000 one year from now. After that, yearly expected cash flows from the factory will grow by 4% per year in perpetuity. The OCC for these cash flows is 11%.

  What happens to the leased property

At the end of the period specified in the lease, the lease ends without notice, and possession of the office returns to Ted. And then are asked to answer the following questions: If Ann dies during the period of the lease, what happens to the leas..

  Explain why by performing the necessary calculations

Should robert vote in favor of or against the voluntary reorganization? explain why by performing the necessary calculations.

  What is morningsides corporate cost of capital

Its estimated cost of equity is 16.4 percent. What is Morningside's corporate cost of capital?

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