Question

What is the value today of an investment that pays $900 every two years forever starting one year from today and $1,800 every two years forever starting two years from today if the APR is 5.25% compounded quarterly? That is, a $900 payment occurs 1 year from today, a $1,800 payment 2 years from today, a $900 payment 3 years from today, and so on.

Answer #1

What is the value of an investment that pays $25,000 every
other year forever, if the first payment occurs one year
from today and the discount rate is 7 percent compounded daily?
(Use 365 days a year. Do not round intermediate
calculations and round your answer to 2 decimal places, e.g.,
32.16.)
..........................................................................................................................................................................
What is the value today if the first payment occurs four years
from today? (Use 365 days a year. Do not round intermediate
calculations and round your...

What is the value of an investment that pays $25,000 every other
year forever, if the first payment occurs one year from today and
the discount rate is 9 percent compounded daily? (Use 365 days a
year. Do not round intermediate calculations and round your final
answer to 2 decimal places. (e.g., 32.16))
What is the value today if the first payment occurs four years
from today? (Use 365 days a year. Do not round intermediate
calculations and round your...

a) What is the value today of receiving $1,000
every other year, forever? The first payment is received
one year from today, and the appropriate discount
rate is 7% per year, compounded annually.
b) What is the value today if the first payment is received two
years from today?

An investment pays $1500 every three years with the first
payment starting one year from now (i.e., second payment is on
t=4). If “effective two year” rate on this project is 10%, estimate
the present value of the investment.
A. $9,151
B. $9,350
C. $9,766
D. $10,742

1. Calculate the present value of an annuity stream that pays
$20,000 every year for 5 years on the last day of each year if your
investment pays 20% compounded quarterly?
2. Calculate the future value of $20,000 invested today for 6 years
if your investment pays 4% compounded annually
3. Calculate the future value of an annuity stream that pays $6,000
every year for 5 years on the last day of each year if your
investment pays 10% compounded...

Your uncle, in his will, left you the sum of $40,000/year
forever with payments starting three years (Year 3) from today
(Year 0). However, the news is even better. He has specified that
the amount would grow at 2% per year after the first payment to
offset inflation rate (i.e., the second payment would be $40,000 x
(1 + 0.02)). With an APR of 3% compounded annually, what is the PV
of the inheritance today?

A security pays $800 every 9 years forever. The appropriate
discount rate is 6% (EAR).
WARNING: This problem can't be solved just by plugging numbers
into your calculator. The cash flows aren't annual, and the first
one doesn't necessarily occur one period from now! You have to map
it out!
What is the value of the security if the first payment occurs 5
years from now?

What is the present value (PV) today of a stable perpetuity that
pays $15,000 every 4 years, starting 2 years from today? The
appropriate annual discount rate is 19% p.a. Round
your answer to the nearest dollar.

What is the market value of Investment XYZ if it pays $3,232 per
month, starting next month, for 6 months and the interest rate is
3.75% APR compounded monthly?

You have just won a very special prize, a "consol" bond that
pays $30,000 every six months (semi-annual payment) forever. The
only caveat is that the first payments is given 5.5 years from now.
You are not that enthusiastic about waiting that long. In fact, you
really want to simply receive 13 quarterly payments with the first
payment starting one quarter from now. If the APR is 12% compounded
monthly, what is the quarterly payment amount you want to receive...

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