What is the value of this annuity five years from now

Assignment Help Finance Basics
Reference no: EM13269716

A five-year annuity of ten $8,000 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 8 percent compounded monthly, what is the value of this annuity five years from now? What is the value three years from now? What is the current value of the annuity?

Reference no: EM13269716

Questions Cloud

Explain carbonate by bubbling carbon dioxide into water : Three manufacturers are producing carbonated bottled water. One company introduces carbonate by bubbling carbon dioxide into water until CT=10-3 M (equivalent to adding "H2CO3*" until CT = 1 x 10-3 M), a second adds sodium bicarbonate (NaHCO3) unt..
What price would you be willing to pay for the bond : A firm has issued a $1,000 par 4% annual coupon bond that is to mature in 18 years. If your required rate of return is 6.5%, what price would you be willing to pay for the bond?
Compute the index of refraction of the unknown liquid : A ray of light in air makes an angle of incidence of 30.2 as it enters an unknown liquid. the refracted ray in the fluid meassured to be 22.5. compute the index of refraction of the unknown liquid
Forms of contracting : Forms of Contracting
What is the value of this annuity five years from now : what is the value of this annuity five years from now? What is the value three years from now? What is the current value of the annuity?
Determine what is the height of the tower : However, nothing is available with which to measure the length of the rope. Therefore, at the bottom of the rope a small object is attached so as to form a simple pendulum that just clears the floor.
Find the age of the bone : A 50.0 g sample of carbon taken from the femur bone of a skeleton is found to havea carbon -14 decay rate of 410 decays/min
Mixed integer linear programming model : The Livewright Medical Supplies Company has a total of 12 salespeople it wants to assign to three regions - the South, the East, and the Midwest
What is the yield to maturity of this bond : Suppose that you have a bond that will pay $100,000 at maturity, does not make any coupon payments, and is currently selling for 96207.29. What is the yield to maturity of this bond?

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of share price that affected by acquisition

Computation of share price that affected by acquisition and expect to happen to the Financial architecture of corporations in these countries over the decade

  Determine what will be value of bbc after issuing the debt

Evaluate what is the value of the equity in BBC and evaluate what is BBC's WACC before issuing the debt also determine what will be value of BBC after issuing the debt

  Discuss the concept of enterprise risk management

Discuss the concept of Enterprise Risk Management. Do you see advantages or disadvantages to this approach to managing risk? Why?

  Calculate some of the key profitability, activity

Calculate some of the key profitability, activity, leverage, liquidity, and market ratios for Best buy and circuit city.

  Calulate the total cost of the seasoned equity

After a banner year of rising profits and positive stock returns, the managers of raptor pharmaceuticals company decided to launch a seasoned equity offering to increase new equity capital RPC currently has ten million shares.

  Profits in us dollars for cherry cola

In the currency markets, 1 U.S. dollar = 0.6373 British pound and 1 U.S. dollar equals 1.0279 euros. Wolverine Cola produces cherry cola in England at a cost of 0.55 British pound per unit.

  What is the amount of the deductible ira contribution

What is the amount of the deductible IRA contribution that John and Mary can make for 2013 assuming that both earn more than $7,000?

  What is this present value of the expected income stream

a real estate investment has the expected year-end annual cash flows: Year 1 $10,000 Year 2 $25,000 Year 3 $50,000 Year 4 %35,000. At a discount of 8% what is this present value of the expected income stream. Hint: Solve for each year's PV then su..

  What is the after-tax cost of preferred stock

A firm is paying an annual dividend of $2.65 for its preferred stock which is selling for $57.00. There is a selling cost of $3.30. What is the after-tax cost of preferred stock if the firm's tax rate is 33%?

  What is the project discounted payback

Project K costs $45,000, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 8%. What is the project's discounted payback? Round your answer to two decimal places.

  Different between how treasury bonds are traded in asx

What is different between how treasury bonds are traded in ASX with how they traded in Australian bond market?

  Determine what order quantity is optimal

Lott Manufacturing Corporation has been ordering parts for its production process in lots of 10,000 units. Each order costs the company $50 to place, and holding costs per unit average $3.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd