You are due to receive $500 every 3 months from your parents starting 3 months from...

You are due to receive $500 every 3 months from your parents starting 3 months from the day you were born. If the three-month interest rate is 0.2%, what is the value of these payments on your 18^th birthday?

Expert Solution

Three month interest rate = 0.2%

Payment per period = 500

Number of payments per year = 4

Total years = 18

Total Payments = 18 * 4 = 72

Value of this payments = Sum of Present Value of payments discounted @ 0.2%

Value of these payments = $33496.93 Answer

jeff jeffy answered 2 years ago

You expect to receive $600 every three months beginning fifteen months from today and expect to...

You expect to receive $600 every three months beginning fifteen months from today and expect to receive these payments forever. If the interest rate is 9% EAR, what is this stream of cash flows worth today? （please slso show the resolution using financial calculator)

You receive $4,000 every three months beginning three months from today for 7 years and an...

You receive $4,000 every three months beginning three months from today for 7 years and an additional $1,200 7 years from today. If the interest rate is 3.0% (EAR), which of the following is closest to the present value (PV) of this stream of cash flows? How should I solve this using the hp10bii+ calculator? If you could show me the steps that would be great!

You receive $500 today and every month for the next 20 years. You will receive this...

You receive $500 today and every month for the next 20 years. You will receive this payment at the beginning of the month. Assume you can earn 5% on this annuity. How much is it worth?

Q1 a) You will receive $1,000 from your parents as a birthday gift in half year....

Q1 a) You will receive $1,000 from your parents as a birthday gift in half year. You have decided to invest it at 5% per annual until you have $1,629. How many years will you have to wait from NOW until you achieve your target? b) You will receive fifty annual payments of $1,000 each beginning at the end of the 40th year. What is the present value of these payments? The appropriate annual discount rate is 10%. Q2 a)...

Starting from year 1, Project A offers to pay you $500 every year for 10 years,...

Starting from year 1, Project A offers to pay you $500 every year for 10 years, whereas Project B offers to pay you $520 for the first year and a yearly increased amount for the next 8 years after year 1. Project B’s payment in year t+1 will be 2% higher than its payment in year t. In year 0, Project A costs $2200 while Project B costs $2250. If the discount rate for Project A is 10% and for...

You are responsible to pay back the following: $400 due today, $500 due in five months,...

You are responsible to pay back the following: $400 due today, $500 due in five months, and $618 due in one year. You are given the option: instead of making the above 3 payments, you can pay the same amount as a single payment 9 months from now. Assuming a 12% per annum (p.a) interest rate, how much will the single payment be?

Your company will receive USD10,000,000 in 3 months' time and will keep the funds for a...

Your company will receive USD10,000,000 in 3 months' time and will keep the funds for a 3-month period to cover a payable 6 months from today. Your analysts think that interest rates may fall from their current level at 6.1% and you want to protect the return you will get until you need the funds. BNP-Paribas, a French bank, offers a FRA with an interest rate of 6% to cover the extra funds for the 3-month period 3 months from...

loan of EGP 80,000 is taken out. Interest payments are due every 3 months at j4=...

loan of EGP 80,000 is taken out. Interest payments are due every 3 months at j4= 10%. A sinking fund is set up to pay back the EGP 80,000 in one lump sum at the end of 5 years. The sinking fund earns j4 = 12 % and deposits are made quarterly. Find the quarterly debt expense.

Starting from the front door of your house, you walk 60.0 m due east to a...

Starting from the front door of your house, you walk 60.0 m due east to a store, and then you walk 40.0 in the direction that is 30.0o south of west to a bench where you sit and read a physics book. For the entire trip starting from the front door of your house to the bench, what is your displacement vector? a) 72.1 m at 33.7o south of east b) 72.1 m at 56.3o south of east c) 32.3...

A person owes $350 due in 3 months and $525 due in 6 months. Ifmoney...

A person owes $350 due in 3 months and $525 due in 6 months. If money is worth 16%, what single payment in 6 months will settle both obligations? Put the focal date at 6 months.

Question