What is the current value of the annuity

Assignment Help Financial Management

Reference no: EM131304674

A 4-year annuity of eight $5,000 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now.

If the discount rate is 6 percent compounded monthly, what is the value of this annuity five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

If the discount rate is 6 percent compounded monthly, what is the value three years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

If the discount rate is 6 percent compounded monthly, what is the current value of the annuity?

Reference no: EM131304674

Questions Cloud

What is present value of these cash inflows at discount rate : Capstone Investments is considering a project that will produce cash inflows of $11,000 at the end of Year 1, $24,000 in Year 2, and $36,000 in Year 3. What is the present value of these cash inflows at a discount rate of 12 percent?

Yield to maturity and yield to cal lwith semiannual payments : Thatcher Corporation's bonds will mature in 11 years. The bonds have a face value of $1,000 and an 9% coupon rate, paid semiannually. The price of the bonds is $1,050. The bonds are callable in 5 years at a call price of $1,050. What is their yield t..

What are the elements of promissory estoppel : What are the elements of promissory estoppel? Provide an example to illustrate them. How is a revocation similar to a counteroffer? Explain both.

Contract to buy an automobile : Mrs. Wilson enters into a contract to buy an automobile for $20,000 from Z Co., a dealer. Mrs. Wilson subsequently backs out of the contract. Z Co. then sells the vehicle to Mr. Thompson for $19,000. Z Co. sues Mrs. Wilson for breach of contract. The..

What is the current value of the annuity : A 4-year annuity of eight $5,000 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 6 percent compounded monthly, what is the value of this annuity five years from now? If the di..

Calculate accumulated depreciation over six years : Genetic Insights Co. purchases an asset for $15,305. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, r..

Estimate the present value of the cash flows : XKL Co. plans a new project that will generate $ 187,000 of continuous cash flow each year for 8 years and additionally $108,000 at the end of the project. If the continuously compunded rate of interest is 4%, estimate the present value of the cash f..

Current yield with semiannual payments : A bond that matures in 9 years sells for $950. The bond has a face value of $1,000 and a yield to maturity of 9.8764%. The bond pays coupons semiannually. What is the bond's current yield?

Determine the total amount paid over the term of the loan : Consider a home mortgage of $200,000 at a fixed APR of 4.5% for 25 years. Calculate the monthly payment. Determine the total amount paid over the term of the loan. Of the total amount paid, what percentage is paid toward the principal and what percen..

User Account

All Pages