Solution-Provide a real-life example of annuity

Provide a real-life example of annuity

Assignment Help Finance Basics

Reference no: EM133120210

(1) Provide a real-life example of annuity.

(2) Suppose you have won a special scholarship due to your excellent academic performance from a global company, and it pays you once a year at the end of every year. Today, December 31^st 2021, you just received your first scholarship of $60,000 and you plan to spend all of it. However, after taking COMM 203, you decided to start saving beginning next year. Your plan is as follows:

One year from today, you will deposit 5 percent of your annual scholarship in an account that will earn 8 percent per year, annual compounding.
Your scholarship will increase at 3 percent per year for another 40 years. How much money will you have on the date of December 31^st, 40 years from today?

Reference no: EM133120210

Questions Cloud

Compare the plan you developed with the nursing care plan : Compare the plan you developed with the nursing care plan already prescribed for this person and discuss any conflicts between these plans

What is the firm required rate of return : 1. Donald Gilmore has $100,000 invested in a 2-stock portfolio. $37,500 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y'

Perform neurovascular observations : Perform neurovascular observations on the affected extremity - Dorsiflexion and plantar flexion of the affected side ankle

Important decisions made by a firm management : Why are capital investments considered the most important decisions made by a firm's management?

Provide a real-life example of annuity : (2) Suppose you have won a special scholarship due to your excellent academic performance from a global company, and it pays you once a year at the end of every

Difference in pioneer co fully diluted earnings : Pioneer Co has issued $300 million in zero-coupon convertible bonds, with a conversion price of $20. Pioneer Co's current share price is $30 per share. Pioneer

Difference between the assigned textbook equation : Explain the difference between the assigned textbook's equation for the beta of the jj th asset vs. its equation for the correlation of the th asset and the "ma

What is the discounted payback period : You invest $12,650 in a project today. You expect to receive cash flows $3,200, $5,160, $4,288, $7,365 and $2,465 for years 1 to 5, respectively.

Collect sample from a person admitted and perform urinalysis : Collect urine sample from a person admitted to your ward and perform urinalysis - demonstrate the initial part of the procedure on a manikin in the simulated

User Account

All Pages

Provide a real-life example of annuity

Reference no: EM133120210

Reference no: EM133120210

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT