### Present value of stream of annuity payments

Assignment Help Finance Basics
##### Reference no: EM1329828

Suppose you are to receive a stream of annual payments (also called an "annuity") of \$9000 every year for 3 years starting this year. This discount rate is 6%. What is the present value of these three payments? Show all your steps and demonstrate a good understanding.

### Previous Q& A

#### Mortgage-annuity and rate of return

A \$20,000 mortgage is to be paid through 180 equal monthly payments, each comprising some principal along with interest on outstanding principal, at an effective rate of 3 1/2 per half year. What are the monthly payments?

#### Compute taxable amount for herberts annuity payments

Herbert purchased a ten year annuity for \$96,000 late in 2008. How much of \$16,000 received this year will be taxable?

#### Basic value concepts

Mario's auto shop plans to purchase a new garage in 3 years to have more space for repairing it's trucks. The garage cost \$400,000. What lump sum amount should the company spend now to have the \$400,000 available at the end of the 3 yr period?

#### Compound interest-future value of an annuity

An investor deposits \$50,000 today in the interest bearing account. How much would the investor accumulate by the end of five years if interest is compounded monthly?

#### Determining the retirement annuity

What annual contributions to retirement fund will let you to receive the \$60,000 annually? What annual contributions are needed if the contributions are made at the beginning of each year?

#### Present value concept and calculating present value

Assume you're to receive the stream of annual payments (also called an "annuity") of \$9000 every year for three years starting this year. The discount rate is 6%. What is the present value of such three payments?

Explain about eBusiness Web sites explain how the supply chain was modified from brick and mortar by the Web sites

#### Finance-annuity-present value

How much money does Sonia require to accumulate through making equal, annual, end-of-year investments to reach her goal of \$250,000? How much should Sonia deposit annually to accumulate at end of year 15 the sum calculated in part a?

#### Explain what is internet2

Explain What is Internet2 and What are the main impacts of Internet2 on E-Commerce and What is the future of Internet2

#### Annuity and perpetuity calculations of sunrise industries

Sunrise Industries wishes to accumulate funds to offer retirement annuity for its vice president of research, Jill Moran. Ms Moran, by contract, will retire at the end of exactly 12 yrs. Draw the timeline describing all of the cash flows associated..

### Similar Q& A

#### Computing average collection period

What is the average collection period (AKA Days Sales Outstanding)? How is it computed? Why is it significant to firm?

#### Computing the cash break-even level of output

Computing the cash break-even level of output where you are considering a new product launch

#### Computing the value of shareholders equity account

Compute the value of shareholders’ equity account for this firm? How much is net working capital?

#### Computation of value of bond and intrinsic value

Computation of value of bond and intrinsic value and Holding everything constant and assuming that the coupon is paid on a semiannual basis

#### Ratio analysis and assets and liability classifications

Ratio analysis, assets and liability classifications, revenue and expenses reporting, basis and calculations for accrual basis accounting and reporting and Basic earnings per share is evaluated

#### Find the capital gains yield

Calculation of Firms growth Rate and Capital Gains Yield at given dividend options -  Find the Capital Gains Yield?

#### Calculation of adjusted net income

Calculation of adjusted net income using ratio analysis and evaluate the amount of 2007 income taxes the Company saved (or paid) as a result of using the LIFO inventory valuation method

#### Computation of approximate cost of the cash float per day

Computation of approximate cost of the cash float per day and the interest rate that could be earned is .02% .0002 per day

#### Describe decision for submission on bid price

Describe Decision for submission on Bid Price and install the equipment necessary to start production of the screws

#### Limitation of internal control

Accounting accrual concept and revenue recognition - Multiple Choice and Which of the following is not a limitation of internal control?

#### Computation of weighted average cost of capital

Computation of weighted average cost of capital and the capital budgeting plans call for funds totaling \$200 million for the coming year

#### Computation of firm''s weighted average cost

Computation of firm's weighted average cost of capital considering marginal tax rate and what is the firm's weighted average cost of capital. 