The required payment is the present value

Assignment Help Financial Management

Reference no: EM131594851

What is the amount of the annuity purchase required if you wish to receive a fixed payment of $100,000 for 25 years? Assume that the annuity will earn 6.85% per year.

The required payment is the present value of $100,000 per year for 25 years at 6.85%.

PV=

Need computation/formula used in Excel for answer.

Reference no: EM131594851

Questions Cloud

Prepare a differential analysis : Prepare a differential analysis, dated January 3, 2014, to determine whether Inman should lease (Alternative 1) or sell (Alternative 2) the machinery

Evaluate the importance of applications of queuing theory : Evaluate the importance of applications of queuing theory in a health services environment. Provide one example of this importance to support your evaluation.

Estimate the contribution margin for each segment : Winston Sylvester Corporation is a brokerage and financial service company. Estimate the contribution margin for each segment

Is the prisoners dilemma entirely applicable in the game : How does the Prisoners' Dilemma apply in the game of Golden Balls? Is the Prisoner's Dilemma entirely applicable in this game? Why or why not?

The required payment is the present value : The required payment is the present value of $100,000 per year for 25 years at 6.85%.

How supply and demand affect fluctuating prices in market : Discuss supply and demand and how they affect fluctuating prices in the market, and discuss how fluctuating markets affect individuals.

Determine the impulse response of the system that is stable : By selecting different ROCs, calculate four possible impulse responses of the transfer function.

Why do businesses enter into agency relationships : Why do businesses enter into agency relationships and hire independent contractors instead of employees. Is it simply cost? Is it a question of liability

Prepare a differential analysis : Prepare a differential analysis dated March 4, 2014, on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber

User Account

All Pages