Future value and interest rate, Taxation

Assignment Help:

Describe the relationship between (i) future value and interest rate; (ii) future value and time period. What about the relationship between the present value and the same variables mentioned in (i) and (ii)?

Why is the future value of an annuity due always greater than that of an ordinary annuity?

You are hurt in a car accident and your lawyer wins a $100,000 settlement to be distributed as follows:

• $20,000 immediate payment
• $5,000 a year for ten years starting now
• $30,000 after ten years.

If the lawyer's fee is $10,000, what is the value of this settlement if the interest rate is 10 percent?

A state lotto awarded a prize of $560,000 a year for the next 20 years starting today. If the state sold $21,900,000 in lotto tickets, what proportion of the sales will the state distribute if it earns 8% annually on invested funds?

e. A fi$ has a $1,000,000 debt (e.g., a bond) outstanding that matures after 10 years. The sinking fund requires the fi$ to set aside annually an amount so the debt may be retired at maturity. If the fi$ can earn 10% annually on these funds, how much must it invest annually to meet the sinking fund?

Describe the relationship between following variables:

i) future value and interest rate;

ii) future value and time period;

iii) present value and interest rate; and

iv) present value and time period.


Related Discussions:- Future value and interest rate

Sales tax, The Johnson family went to dinner at Pasta Palace. Mr. Johnson o...

The Johnson family went to dinner at Pasta Palace. Mr. Johnson ordered a meal for $6.25;Mrs.Johnson ordered a meal for $ 7.50; the 2 children ordered individual pizza for $ 4.99 ea

Computation, "Alfred E. Old and Beulah A. Crane, each age 42, married on Se...

"Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2010. Alfred and Beulah will file a joint return for 2011. Alfred''''s Social Security number is 111-11-111

Corporate Taxation, A owns all of the stock of X. The stock’s basis is $2,...

A owns all of the stock of X. The stock’s basis is $2,300. X has a total of current earnings and profits of $1,500 but accumulated earnings and profits of negative $500 (i.e., an

C program to input salary and output payable tax, c program to input the sa...

c program to input the salary and output payable tax using the following information salary tax 10,000-20,000 2% 20,000-35,000 4% 3

What method of tax accounting used, Jenny is 35 years of age, single and is...

Jenny is 35 years of age, single and is a professional hairdresser. She was born in Australia, however she often travels overseas for extended periods for work purposes. Jenny r

Statements on Standards for Tax Services, 28) Explain how Treasury Departme...

28) Explain how Treasury Department Circular 230 differs from the AICPA’s Statements on Standards for Tax Services.

The tax rate of wyoming coal company , Wyoming Coal Company is interested i...

Wyoming Coal Company is interested in buying a machine for $40,000, which it will depreciate uniformly over a four-year period. An analysis of the life expectancy of such machines

Evaluate total income effect for equity-method investment, Given the below ...

Given the below facts, what is the total income effect for the year for an investor for its equity-method investment? T y pe of Investment: Equity Method

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