Question

Bridget Jones has a contract In which she will receive the following payment for the next five years: $20,000, $22,000, $23,000, and $24,000. she will then receive an annuity of $26,000 a year from the end of the 6th through the end of the 15th year. the appropriate discount rate is 10 percent.

What is the present value oa all future payments.

Answer #1

Bridget Jones has a contract in which she will receive the
following payments for the next five years: $8,000, $9,000,
$10,000, $11,000, and $12,000. She will then receive an annuity of
$14,000 a year from the end of the 6th through the end of the 15th
year. The appropriate discount rate is 13 percent.
a. What is the present value of all future payments?

Bridget Jones has a contract in which she will receive the
following payments for the next five years: $17,000, $18,000,
$19,000, $20,000, $21,000. She will then receive an annuity of
$24,500 a year from the end of the sixth year through the end of
the 15th year. The appropriate discount rate is 18
percent.
a. What is the present value of all future
payments?

Betty Kay has a contract in which she will receive the following
payment for the next 5 year: $1,000, $2,000, $3,000, $4,000 and
$5,000. She will then receive an annuity of $8,500 a year for the
end of the 6th through the end of the 15th year. She is offered
$30,000 to cancel the contract. If the payments are discounted at
14 percent should she cancel the contract? Show all workings.
Please work using the Financial Calculator

Betty Kay has a contract under which she will receive the
following payment for the next 5 years: $1,000, $2,000, $3,000,
$4,000 and $5,000. She will then receive an annuity of $8,500 a
year for the end of the 6th through the end of the 15th year. She
is offered $30,000 to cancel the contract. If the payments are
discounted at 14 percent should she cancel the contract? Show all
workings

Del Monty will receive the following payments at the end of the
next three years: $23,000, $26,000, and $28,000. Then from the end
of the fourth year through the end of the tenth year, he will
receive an annuity of $29,000 per year.
At a discount rate of 10 percent, what is the present value of
these future benefits? (

Del Monty will receive the following payments at the end of the
next three years: $24,000, $27,000, and $29,000. Then from the end
of the 4th year through the end of the 10th year, he will receive
an annuity of $30,000 per year. At a discount rate of 16 percent,
what is the present value of all three future benefits?

Dusty Wallace will receive $8,000 and $9,000 at the end of the
next two years respectively. Then from the end of the third year
through the end of the tenth year, he will receive an annuity of
$10,000. At a discount rate of 8% what is the present value of all
future benefits? (10)

Carrie Tune will
receive $18,250 a year for the next 19 years as payment for a song
she has just written. If a present 8 percent discount rate is
applied: Use Appendix D. (Round "PV Factor" to 3 decimal
places. Round the final answers to the nearest whole
dollar.)
a-1.
Calculate the present value.
Present
value $
a-2.
Should she be willing to sell out her future rights now for
$161,000?
No
Yes
b-1.
Calculate the present value if the payments...

carrie tune will receive $30,250 for the next 12 years as a payment
for a new song she has written. use appendix D for an approximate
answer, but calculate your final answer using the formula and
financial calculator methods.
A. what is the present value of these payments if the discount
rate is 11 percent? (round to 2 decimal places)?
B. should she be willing to sell out her future rights now for
$190,000?

You are entering into a contract that will provide you with an
income of $1,000 at the end of the year for the next 10 years. If
the annual interest rate is 7%, what is the present value of the
stream of payments (ordinary annuity)? What is the future value if
the payment is withdrawn at the beginning of each year (annuity
due)?

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