What is the most he should have to pay for the annuity

Assignment Help Finance Basics
Reference no: EM13267500

Mark Ventura has just purchased an annuity to begin payment at the end of 2016 ( that is the date of the first payment). Assume it is now the beginning of the year 2014. The annuity is for $8,000 per year and is designed to last 10 years. If the interest rate for this problem calculation is 13%, what is the most he should have to pay for the annuity?

Reference no: EM13267500

Questions Cloud

Describe complexity of managing multinational corporations : Describe the complexity of managing multinational corporations and the risks they face when conducting international deals that are different from domestic deals?
Find the magnification of the fish : a small tropical fish is at the center of a water-filled spherical gishbowl 30cm in diameter. find the magnification of the fish to an observer outside the bowl
Evalaute the mathematical operations : Execute the following mathematical operations and express each answer in scientific notation with the correct number of significant
Find what is the value of the voltage source : A Two resistor voltage divider consists of a 10k ohm and a 15k ohm resistor, with the 10k ohm resistor connected to the voltage source and the 15k ohm resistor connected to ground. if the output voltage is 2.5V
What is the most he should have to pay for the annuity : The annuity is for $8,000 per year and is designed to last 10 years. If the interest rate for this problem calculation is 13%, what is the most he should have to pay for the annuity?
Obtain the voltage across the battery terminals : A flashlight bulb with a resistance of 40 ohm is powered with a 6 volt battery and produces 0.75W of power. what is the voltage across the battery terminals when the light bulb is on
Find the probability for any given set of 12 cultures : Experience has shown that about 6 out of 100 cultures are randomly spoiled by the bacteria. If the research requires 3 simultaneously derived unspoiled data points for success, find the probability for any given set of 12 cultures (3 data points o..
Explain use the tabulated data to calculate : Use the tabulated data below to calculate x, s, and % RSD using your hand held calculator. Show all of your calculations for full credit.
How the practice of nursing is expected to grow : Write an informal presentation to educate nurses about how the practice of nursing is expected to grow and changes.

Reviews

Write a Review

Finance Basics Questions & Answers

  Relationship in future value factor and present value factor

What is the relationship between the future value factor for five years at 5 percent and the present value factor for five years at 5 percent?

  What is the return on invested capital

What is the Return on invested capital (ROIC) for the current year?

  Determine the approximate cost of cash discount

XieCorp is analyzing credit terms of each of three suppliers, A, B, and C. Calculate the approximate cost of giving up the cash discount.

  Should it replace the old steamer

What is the NPV of the project? Round your answer to the nearest dollar.

  What is the total value of these amounts

An investment is expected to pay $300 at the end of year 3, $500 at the end of year 5, and $300 at the end of year 7. What is the total value of these amounts as of today if discount rate is 6%?

  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

  Calculate the ratios on the worksheet

Select any publicly traded company that their financials are published on the SEC website. For the purpose of this assignment we have selected Kirkland's Corporation Kirkland is specialty retailer of home decor in the US,

  Find appropriate quote and calculate the price

As the cash manager of your firm, you wish to buy $1,000,000 in thirty day Treasury bills. You obtain the following bid/ask quotes from three dealers:

  Determination of new debt ratio

A Corporation has a debt ratio of 0.5, total assets turnover of 0.25, and profit margin of 10 percent. The company wants to double ROE by increasing profit margin to 12 percent,

  Question on risk and return

The expected rate of return on an investment with a beta of 2 is twice as high as the expected rate of return of the market portfolio.

  Decide between two different conveyor belt systems

Lang Industrial Systems company is trying to decide between two different conveyor belt systems.

  What is the benefit of the remodeling project

Heartland Insurance has agreed to pay an additional $81,943 a year in rent for the next 6 years. The discount rate is 0.1. What is the benefit of the remodeling project to Professional Properties?

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