Question

How much would you be willing to pay today for an ordinary annuity that makes equal...

How much would you be willing to pay today for an ordinary annuity that makes equal annual payments of $3,000 each year. You will receive your first payment 7 years from today and you will receive your last payment 32 years from today. The interest rate on this annuity is 4.1%

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Find the value (today, time zero) of an annuity that makes equal annual payments of $1,000...
Find the value (today, time zero) of an annuity that makes equal annual payments of $1,000 each year with its first payment at the end of year 7 and its last payment at the end of year 15. The interest rate is 8.3%.
You want to receive $50,000 five years from today and a retirement annuity of $100,000 per...
You want to receive $50,000 five years from today and a retirement annuity of $100,000 per year for 25 years with the first payment 10 years from today. To pay for this, you will make 5 payments of A per year beginning today and 10 annual payments of A with the first payment 8 years from today. With an interest rate of 8%, what is the value for A?
Matt is considering purchasing one of two annuities. The first annuity, an ordinary annuity, will pay...
Matt is considering purchasing one of two annuities. The first annuity, an ordinary annuity, will pay $1,000 at the end of each quarter for 20 years. The second annuity, an annuity due, will pay $1,000 at the beginning of each quarter for 20 years. Which of the following statements is correct regarding these annuities? A. The present value of an ordinary annuity is equal to the present value of an annuity due. B. An ordinary annuity has a higher future...
13. You own an ordinary annuity contract that will pay you RM3,000 per year for 12...
13. You own an ordinary annuity contract that will pay you RM3,000 per year for 12 years. You need money to pay back a loan in 6 years, and you are afraid if you get the annuity payments annually you will spend the money and not be able to pay back your loan. You decide to sell your annuity for a lump sum of cash to be paid to you five years from today. If the interest rate is 8%,...
Assume that you just received an ordinary annuity with 9 annual payments of $1,000 each. You...
Assume that you just received an ordinary annuity with 9 annual payments of $1,000 each. You plan to invest the payments at a 7% annual interest rate. How much would you have, in total, at the end of the 8th year? Group of answer choices $10,713.34 $10,503.27 $10,095.42 $11,977.99 $10,297.33 Assume that you just received an ordinary annuity with 6 annual payments of $1,000 each. You plan to invest the payments at a 6% annual interest rate. What will the...
A.)How much do you need to invest semiannually into an ordinary annuity earning an annual interest...
A.)How much do you need to invest semiannually into an ordinary annuity earning an annual interest rate of 7.12% compounded semiannually so that you will have $5,953.19 after 7 years? B.) If you make quarterly deposits of $309.00 into an ordinary annuity earning an annual interest rate of 5.74%, how much will be in the account after 15 years? How much interest did you earn in those 15 years?
How much would you be willing to pay today for an investment that pays the following...
How much would you be willing to pay today for an investment that pays the following cash flows at the end of each of the next 4 years if your required rate of return is 9% per year? Period        Cash Flow 0 $0 1 $100 2 $200 3 $300 4 $400
Consider an annuity with equal monthly payments of $300 for 5 years, with the first payment...
Consider an annuity with equal monthly payments of $300 for 5 years, with the first payment starting 7 months from now. If the effective annual rate for the first two years (starting today) is 5% and the nominal rate in subsequent years is 6% per annum compounded semi-annually, calculate the future value of this annuity immediately after the last monthly payment.
How much would a bank be willing to loan if the borrower offered terms of repaying...
How much would a bank be willing to loan if the borrower offered terms of repaying $10,000 every three year for 36 years (i.e. first payment 3 years from today, the second payment is received 6 years from today, etc.) and the relevant rate of interest is 7% compounded annually?
Please explain how to answer the following question using Excel: How much would Mel be willing...
Please explain how to answer the following question using Excel: How much would Mel be willing to pay for an annuity that will pay Mel $150,000 a year for twenty years, assuming a 5.25% rate of interest? (Treat this as an ordinary annuity.)