Question

In: Finance

How much is the price of a perpetual annuity with quarterly payments of $200 starting 4...

How much is the price of a perpetual annuity with quarterly payments of $200 starting 4 years from now and discount rate (dr) 8%? Price is always the period prior to the first payment.

Solutions

Expert Solution

Formulae

Formulae as above

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

How much would you be willing to pay for a 10-year ordinary annuity if the payments...
How much would you be willing to pay for a 10-year ordinary annuity if the payments are $500 per year and the interest rate is 6.25% compounded annually ?
What is the present value of an annuity consisting of 5 annual payments of $200 with...
What is the present value of an annuity consisting of 5 annual payments of $200 with an interest rate of 8% p.a. compounded annually and the first payment made immediatel a $889.68 B) $643.77 C) $862.43 D) $798.54
What is the present value of an annuity consisting of 5 annual payments of $200 with...
What is the present value of an annuity consisting of 5 annual payments of $200 with an interest rate of 8% p.a. compounded annually and the first payment made immediatel a $889.68 B) $643.77 C) $862.43 D) $798.54
A.) If you make quarterly payments of$331.00 into an ordinary annuity earning an annual interest rate...
A.) If you make quarterly payments of$331.00 into an ordinary annuity earning an annual interest rate of 5.47%, how much will be in the account after 4 years? B.) If you make monthly payments of $464.00 into an ordinary annuity earning an annual interest rate of 7.4% compounded monthly, how much will you have in the account after 5 years? After 9 years? C.) In 3 years Harry and Sally would like to have $26,000.00 for a down payment on...
3-year annuity immediate with monthly payments has an initial payment of 200. Subsequent monthly payments are...
3-year annuity immediate with monthly payments has an initial payment of 200. Subsequent monthly payments are x% more than each preceding payment. Given that the amount of the 14th payment is 481.969, determine the present value of the annuity using a 9%, compounded monthly, interest rate.
You buy an annuity-immediate for $5000 that pays $200 quarterly for next 8 years. Calculate the...
You buy an annuity-immediate for $5000 that pays $200 quarterly for next 8 years. Calculate the nominal annual interest rate convertible half-yearly.
Find the future value of an ordinary annuity of $20 paid quarterly for 4 years, if...
Find the future value of an ordinary annuity of $20 paid quarterly for 4 years, if the interest rate is 9%, compounded quarterly. (Round your answer to the nearest cent.) $
A lottery offers the chance to win a prize of receiving payments forever starting with $200...
A lottery offers the chance to win a prize of receiving payments forever starting with $200 for the first payment followed by each consecutive payment increasing by $250 until the payment size reaches $700. If you receive a payment every quarter, with the first in one quarter and interest is earned at j4 = 5%, what amount must the lottery have in the account today to fund the prize?
A 10-year annuity making quarterly payments of 3250 will make its first payment 11 years and...
A 10-year annuity making quarterly payments of 3250 will make its first payment 11 years and 3 months from today. You would like to purchase this annuity 2 years from today. If you want to earn an effective annual rate of 4.5% what should you be willing to pay 2 years from now? Enter your answer below to the nearest dollar.
If you have an annuity due that pays $10,000 annual payments for 10 years starting today,...
If you have an annuity due that pays $10,000 annual payments for 10 years starting today, what is it worth right now if it is discounted at 10%?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT