Question

You made an investment which will pay you $950 per year for the next 11 years....

You made an investment which will pay you $950 per year for the next 11 years. You can earn 8.2% per year on similar investments. What is the value of this investment if the first payment made to you is today?

$6,716.70

$7,085.68

$7,716.70

$7,666.70

None of the above
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are considering an investment that promises to pay $1,000 per year for the next 10...
You are considering an investment that promises to pay $1,000 per year for the next 10 years. The interest rate associated with investments having similar risk is 6.0%. How much would you be willing to pay for this investment? Hint: students may wish to use Excel to facilitate the calculations
You are offered an investment that will pay you $1,721 per month for next 16 years....
You are offered an investment that will pay you $1,721 per month for next 16 years. Assuming you want to earn an 5.04% rate of return, what is this investment worth today? Round to the nearest cent.
.A risk-free investment promises to pay you $550 every 6 months for the next 11 years....
.A risk-free investment promises to pay you $550 every 6 months for the next 11 years. If you can earn 9.5% on your money, how much would you be willing to pay for this investment? You want to retire and have annual payments of $50,000 over a 20 year period. You plan to retire in 17 years. If you can earn 7.5% on your funds, how much do you need to invest monthly until you retire to reach your goal?...
You are considering between 2 investments: A and B. Investment A will pay you $100 per...
You are considering between 2 investments: A and B. Investment A will pay you $100 per year forever with the first cash flow occurring 11 years from today. Investment B will pay you $90 per year forever with the first cash flow also occurring 11 years from today; however, the cash flow amounts are expected to grow at 1% forever. Assume interest rates are expected to be 6.125% every year forever 1. What is investment A worth today 2. What...
An investment will pay $150 at the end of each of the next 3 years, $250...
An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 11% annually, what is its present value? Round your answer to the nearest cent. If other investments of equal risk earn 11% annually, what is its future value? Round your answer to the nearest cent.
An investment will pay $100 at the end of each of the next 3 years, $200...
An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $350 at the end of Year 5, and $550 at the end of Year 6. A. If other investments of equal risk earn 11% annually, what is its present value? Round your answer to the nearest cent. B. If other investments of equal risk earn 11% annually, what is its future value? Round your answer to the nearest...
You are valuing an investment that will pay you $24,000 per year for the first 6...
You are valuing an investment that will pay you $24,000 per year for the first 6 years, $28,000 per year for the next 10 years, and $54,000 per year the following 14 years (all payments are at the end of each year). If the appropriate annual discount rate is 6.00%, what is the value of the investment to you today?
1. You are offered an investment that will pay $100 annually for 7 years (the first...
1. You are offered an investment that will pay $100 annually for 7 years (the first payment will be made at the end of year 1) plus $2,900 at the end of year 7. If the appropriate discount rate is 5%, assume annual compounding, what is the investment worth to you today? 2. You are offered an investment that will pay $100 annually for 7 years (the first payment will be made at the end of year 1) plus $2,900...
7. An investment will pay $100 at the end of each of the next 3 years,...
7. An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $350 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $   Future value: $   8. You want to buy a car,...
An investment will pay $150 at the end of each of the next 3 years, $250...
An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $400 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 11% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $   Future value: $   You want to buy a car, and a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT