What is the length of the annuity time period

Assignment Help Financial Management

Reference no: EM13880573

You are considering an annuity which costs $72,600 today. The annuity pays $5,100 a year. The rate of return is 4 percent. What is the length of the annuity time period?

-5.39 years

-10.74 years

-14.24 years

-21.48 years

-2.42 years

Reference no: EM13880573

Questions Cloud

Certificate of deposit from a bank : Your grandmother asks for your help in choosing a certificate of deposit (CD) from a bank with a one year maturity and a fixed interest rate. If the first certificate of deposit, #1 pays 2.95 percent APR compounded annually, the EAR for the deposit i..

Shares of stock outstanding and debt outstand : Schultz Industries is considering the purchase of Arras Manufacturing. Arras is currently a supplier for Schultz, and the acquisition would allow Schultz to better control its material supply. Arras currently has 3 million shares of stock outstanding..

Investment account for purpose of buying new equipment : One year ago, the Jenkins family fund center deposited $4,900 in an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $6,700 to this account. They plan on making a final deposit of $8,900..

Borrowers in fixed mortgage rate and variable mortgage rate : What are the differences to the borrowers between Fixed Mortgage Rate and Variable Mortgage Rate? If the cost of capital is low and there is little demand for the product, would companies still expand their capital investment?

What is the length of the annuity time period : You are considering an annuity which costs $72,600 today. The annuity pays $5,100 a year. The rate of return is 4 percent. What is the length of the annuity time period?

Company have to wait before expanding operations : Winston enterprises would like to buy some additional land and build a new factory. The anticipated total cost is $158.82 million. The owner of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for..

What is the equipments after-tax salvage value : Kennedy Air Services is now in the final year of a project. The equipment originally cost $24 million, of which 75% has been depreciated. Kennedy can sell the used equipment today for $6 million, and its tax rate is 35%. What is the equipment's after..

Find payoff of interest rate call option on annual rate : Find the payoff of an interest rate call option on the annual rate with an exercise rate of 10 percent if the one-period rate at expiration is 11 percent.

Required to determine swaption payoff at expiration : Which of the following is not required to determine a swaption payoff at expiration?

User Account

All Pages