What is the cost of purchasing the annuity today

Assignment Help Accounting Basics

Reference no: EM132086337

Question: You wish to purchase an annuity today, that will pay you $50,000 per year for 30 years. You will start collecting the annuity 10 years from today. If the interest rate is 4%, what is the cost of purchasing the annuity today? The answer must be typed, in times new roman font (size 12), and must follow APA format.

Reference no: EM132086337

Questions Cloud

What is the present value of the lottery payments : You have just won a lottery entitling you to receive, starting today, a series of 15 semiannual payments of $5,000 each, followed, one year after this series.

What is the least amount of money : You just won a settlement and are trying to decide on the option of 15 annual payments of $100,000.00 per year or the lump sum payout.

What amount of interest expense should be reported : What amount of interest expense should be reported in the 20X4 consolidated income statement? (Do not round your intermediate calculations).

How much will she have to set aside today : Jane expects that she will need $20,000 for her dream vacation. If she is able to earn 8% per annum on an investment, how much will she have to set aside today.

What is the cost of purchasing the annuity today : You wish to purchase an annuity today, that will pay you $50,000 per year for 30 years. You will start collecting the annuity 10 years from today.

Define journal entry to record completion of processing is : Winnie, Inc. has two processes long-Coloring Department and Mixing Department. The company assigned $390,000 to the 5,000 gallons of paint transferred.

How could liquidity ratios be used by investors : Ratios provide the users of financial statements with a great deal of information about the entity. Do ratios tell the whole story?

Find the amount of direct labor and factory overhead : Wilturner Company incurs $80,000 of labor related directly to the product in the Assembly Department, $29,000 of labor not directly related to the product.

Define what will one share of common stock be worth : Winter Time Adventures is going to pay an annual dividend of $2.82 a share on its common stock next week. This year, the company paid a dividend of $2.70.

User Account

All Pages