What is the present value of an annuity

Assignment Help Finance Basics
Reference no: EM13261611

What is the present value of an annuity of $4,000 received at the beginning of each ear for the next eight years? The first payment will be received today, and the discount rate is 9% (round to the nearest $1).

Reference no: EM13261611

Questions Cloud

Explain the relationship between risk and return : Explain the relationship between risk and return. What can an investor do to reduce risk?
Determine a m-bit thermometer code for the number k : A M-bit thermometer code for the number k consists of k 1's in the least significant bit positions and M-k 0's in the more significant bit positions. A binary-to-thermometer code converter has N inputs and 2^N-1 outputs.
What limitations exist for the developed method : Is there a linear relationship between age and education, and if so, how strong is that relationship? Is it possible to predict educational level based on age? If so, what limitations exist for the developed method?
Determine the primary current when both loads are connected : A 240/40 volt transformer supplies two different secondary loads. One load (a) draws a current of 12 amperes at a lagging power factor of 0.94. The other load (b) draws a current of 12 amperes at a leading power factor of 0.94.
What is the present value of an annuity : What is the present value of an annuity of $4,000 received at the beginning of each ear for the next eight years? The first payment will be received today, and the discount rate is 9% (round to the nearest $1).
What is cyberdomes inventory balance : Cyberdome Inc. has a current ratio equal to 3, a quick ratio equal to 1.8, and total current assets of RM6 million. What is Cyberdome's inventory balance?
Find power-factor capacitor that must be placed in parallel : The lighting and motor loads of a small factory establish a 10kVA power demand at 0.7 lagging power factor on a 208V, 60 Hz supply. Determine the power-factor capacitor that must be placed in parallel
What will be the new period of the system : A performer, seated on a trapeze, is swinging back and forth with a period of 9.95 s. what will be the new period of the system
What is fendys holding period return : Fendy purchased 800 shares of Grandsports' stock at RM3 per share on 1/1/12. He sold the shares on 12/31/12 for RM3.45. Grandsports' stock has a beta of 1.9, the risk-free rate of return is 4%, and the market risk premium is 9%. What is Fendy's ho..

Reviews

Write a Review

Finance Basics Questions & Answers

  Show the entry for the sale of investments by the jan 2,2013

As of January 1, 2013, the Baber School District notifies the pool it needs to withdraw $1,000,000 cash from the pool, so the pool management sells investments to obtain $700,000 cash. The investments sold had been carried in the Investment Trust Fun..

  Compute the interest rate

Compute the interest rate for a $1,000 face value a bond that sells for $280 and matures in 20 years. The bond has no coupon payments, only the face value payment.

  Discussion on the scenarios

When the 56 year old organizer of Gulf & Western, Corporation died of a heart attack, the stock price immediately jumped from $18.00 a share to $20.25, a 12.5 percent increase.

  Global investments-mergers questions

Which of the two long-term financing securities (debt or equity) would potentially maximize shareholder earnings more?

  Make journal entries to record transactions

On the 1st December 2011, Betty, Alvin & Yogee started a watch trading company, Baywatch Pvt. Ltd. with a paid up capital of $150,000 to be subscribed equally by the three (3).

  What would your balanced four years

Suppose you deposited the $1000 in 4 payments of $250 each at year 1, year 2, year 3, and year 4. How much would you have in your account at year 4, based on 8 percent annual compounding?

  Use equation method to determine the break even point

Blackmon Manufacturing Corporation makes a product that it sells for $50 per unit. The Corporation incurs variable manufacturing costs of $14 each unit. Variable selling expenses are $6 each unit,

  Show how the folowing transactions affect te balance sheet

Show how the folowing transactions affect te balance sheet of a certain commercial bank

  What is its aftertax cost of debt

Telecom Systems can issue debt yielding 12 percent. The company is in a 30 percent bracket. What is its aftertax cost of debt?

  Calculate the additional funds needed

Assume net income for the coming year is p redicted  to be $1,634 and dividends are forecasted to be $657. After careful analysis, you determine asset needs for next year are $48,824 and liabilities are expected to be $12,869.

  What is the per-share value of the companys common stock

What is the per-share value of the company's common stock?

  Four time value of money concepts

Explain the four time value of money concepts - present value, present value of an annuity, future value, and future value of annuity.

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