Question

In: Finance

an investment pays 2600 per year for the first 7 years, 5200 per year for the...

an investment pays 2600 per year for the first 7 years, 5200 per year for the next 7 years and 7800 per year the following 10 years (all payments are at the end of each year). if the discount rate is 12.85% compounding quarterly, what is the fair price of the investment?

Solutions

Expert Solution

jeff jeffy answered 5 hours ago
Next > < Previous

Related Solutions

An investment pays $2,050 per year for the first 3 years, $4,100 per year for the...
An investment pays $2,050 per year for the first 3 years, $4,100 per year for the next 3 years, and $6,150 per year the following 7 years (all payments are at the end of each year). If the discount rate is 8.75% compounding quarterly, what is the fair price of this investment?
An investment pays $2,050 per year for the first 3 years, $4,100 per year for the...
An investment pays $2,050 per year for the first 3 years, $4,100 per year for the next 3 years, and $6,150 per year the following 7 years (all payments are at the end of each year). If the discount rate is 8.75% compounding quarterly, what is the fair price of this investment?
An investment pays $1,900 per year for the first 4 years, $3,800 per year for the...
An investment pays $1,900 per year for the first 4 years, $3,800 per year for the next 7 years, and $5,700 per year the following 12 years (all payments are at the end of each year). If the discount rate is 7.70% compounding quarterly, what is the fair price of this investment? Work with 4 decimal places and round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is...
An investment pays $2,500 per year for the first 4 years, $5,000 per year for the...
An investment pays $2,500 per year for the first 4 years, $5,000 per year for the next 3 years, and $7,500 per year the following 9 years (all payments are at the end of each year). If the discount rate is 11.85% compounding quarterly, what is the fair price of this investment? Work with 4 decimal places and round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is...
An investment pays $1,950 per year for the first 5 years, $3,900 per year for the...
An investment pays $1,950 per year for the first 5 years, $3,900 per year for the next 6 years, and $5,850 per year the following 10 years (all payments are at the end of each year). If the discount rate is 10.95% compounding quarterly, what is the fair price of this investment? Work with 4 decimal places and round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is...
An investment offers $6996 per year for 11 years, with the first payment occuring 7 years...
An investment offers $6996 per year for 11 years, with the first payment occuring 7 years from now. if the required return is 11 percent, what is the value of the investment?
An investment over 4 years has an HPR of +4% in the first year, -7% in...
An investment over 4 years has an HPR of +4% in the first year, -7% in the second, +3.75% in the third, and +2.15% in the fourth year. Calculate the average annual compound rate of return over this 4-year holding period.
An investment offers $13800 per year for 5 years, with the first payment occurring 8 years...
An investment offers $13800 per year for 5 years, with the first payment occurring 8 years from now. If the required return is 15 percent, what is the value of the investment?
An investment offers $3,527 per year for 18 years, with the first payment occurring 1 year...
An investment offers $3,527 per year for 18 years, with the first payment occurring 1 year from now. If the required return is 4 percent, what is the value of the investment?
An investment offers $7,952 per year for 24 years, with the first payment occurring 1 year...
An investment offers $7,952 per year for 24 years, with the first payment occurring 1 year from now. If the required return is 13 percent, what is the value of the investment? An investment offers $3,751 per year for 18 years, with the first payment occurring 6 years from now. If the required return is 9 percent, what is the value of the investment? (HINT: Remember that when you calculate the PV of the annuity, the claculator gives you the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT