Estimate the present value of benefits, Finance Basics

Assignment Help:

(a) A couple has just celebrated their 25th wedding anniversary. What is the probability of them celebrating their 50th wedding anniversary, if the husband is aged exactly 50, his wife is aged exactly 45, and assuming that both of their mortality follows the AM92 Ultimate table? (Assume they won't get divorced!)

(b) Adam, aged 65 and earning $60,000 a year is about to retire on a pension equal to two thirds of his salary at retirement. The pension will remain at this rate as long as both he and his business partner, Ben, now aged 60, are alive, but will reduce to one half of his final salary on the death of either partner. Estimate the present value of these benefits if the pension is payable annually in advance at 4% pa interest. Use the AM92 Ultimate table. You are also given ä65.60=10.5982


Related Discussions:- Estimate the present value of benefits

Dividend basis valuation, Dividend Basis Valuation Ownership of shares...

Dividend Basis Valuation Ownership of shares in entities - The owner to obtain a cash flow consisting of future dividends and the value of a share must correspond to the recen

Potential investors - measuring business performance, Potential Investors -...

Potential Investors - Measuring Business Performance Potential investors These parties are interested in a company in total both on long and short term basis in particula

Working Capital, AsStudents will analyze and synthesize the financial repor...

AsStudents will analyze and synthesize the financial reports of an organization of their choice and present their findings in a PowerPoint presentation (with completed Notes sectio

Income statement, how ca i calculate the common stock dividends in the inco...

how ca i calculate the common stock dividends in the income statement if it is not mentioned

Calculate its operating-financial and combine leverage, The operating and c...

The operating and cost data of ABC Ltd. are: Sales Rs. 20,00,000 Vari

Pbp reciprocal, PBP Reciprocal PBP expresses the profitability of a pr...

PBP Reciprocal PBP expresses the profitability of a project in terms of years.  It does not indicate any return as measure of investment. The PBP reciprocal has been utilized

Example of npv method, Example of NPV Method Resolution limited inte...

Example of NPV Method Resolution limited intends to purchase a machine worth Shs.1, 500,000 that will have a residue value Shs.200,000 after 5 years helpful life. The saving

Monetary control operations, 'The most significant function of any Central ...

'The most significant function of any Central Bank is to undertake monetary control operations'.   Discuss with specific reference to the Bank of England, highlighting its current

Trial and error method, Trial and Error Method a) Select any rate of i...

Trial and Error Method a) Select any rate of interest on random and employ it to compute NPV of cash inflows. b) If rate selected produces NPV lower than the cost, want a l

Example of theoretical value, Example of Theoretical Value As a result...

Example of Theoretical Value As a result of the purchase of an asset, the income stream will rise by of £1,000 per annum for 25 years.  By assuming a discount rate of 20 perce

Write Your Message!

Captcha
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