A salt mine you inherited will pay you $61,000 per year for 25
years, with the...
A salt mine you inherited will pay you $61,000 per year for 25
years, with the first payment being made today. If you think a fair
return on the mine is 7.5%, how much should you ask for it if you
decide to sell it?
you
inherited an annuity that will pay you $900 per year for 18 years,
with the first payment being made today. would you sell it today if
you were offered a price of $11,000 for it? assume interesr rate is
5%
Calvin just inherited an annuity that promises to pay $50,000
per year for 10 years, beginning 15 years from today. Assuming a
required rate of return of 10%, Calculate the present value of the
annuity.
Your first job out of college will pay you $61,000 in year 1
(exactly one year from today), growing at a rate of 3.0% per year
thereafter. You will also receive a one time bonus of $39,000 at
the same time as your first salary. You plan to retire in 39 years
(you'll receive 39 years of salary). If the applicable discount
rate is 6%, what is the present value of these future earnings
today? Round to the nearest cent.
Suppose that you have inherited an annuity that will pay $1000
for 50 years.
A) Assuming that the first payment occurs exactly one
year from now and that the annual opportunity cost of
capital is 10% , what is the value of this annuity today? Round
your final answer to two decimals.
B) Assuming that the first payment occurs
immediately and that the annual opportunity cost
of capital is 10%, What is the value of this annuity today? Round
your...
You invest in a project that will pay you $500 per year for 5 years and then pays $750 per year for the following 10 years (assume that all payments are made at the end of the year). You require a 6% rate of return on this type of investment. Give your return requirement, what is the maximum amount that you would be willing to pay today for the cash flow stram associated with this project? Round only your final...
You will need $100,000 per year for 25 years starting
in year 45. You are able to save
$3000 per year from year 3 to year 15, inclusive. How
much must you save from years 16 through 37, inclusive, if
interest rates will be 4% from years 0 through the end of year
25 and 7% starting at the beginning of year 26 and
on? Solve for the unknown payments:
Please show work: I do not understand my professors work
You just purchased an annuity that will pay you $24,000 a year
for 25 years, starting today. What was the purchase
price if the discount rate is 8%?
$256,195
$251,409
$245,621
$276,690
$258,319
Assume that you own an annuity that will pay you $15,000 per
year for 13 years, with the first payment being made today. You
need money today to start a new business, and your uncle offers to
give you $120,000 for the annuity. If you sell it, what rate of
return would your uncle earn on his investment?
a. 8.25%
b. 9.45%
c. 10.97%
d. 7.78%
e. 11.07%
Suppose that you have inherited an annuity that will pay $1000
one year from now,
A) And a payment that is 5% larger than the prior payment each
of the next 49 years. Assuming that the first payment occurs
exactly one year from now and that the annual opportunity cost of
capital is 10%, What is the value of this annuity today? Round your
final answer to two decimals.
B) Each of the following payments will be 5% larger than...
Your current salary is $52,000 per year, and you are
planning to retire in 25 years from now. She anticipates that her
salary will increase $3,000 each year, and she plans to deposit 5%
of her yearly salary into a retirement fund that earns 7% interest
compounded daily. What will be the amount of interest accumulated
at the time of your retirement?