Question

In: Finance

What is the present value of $2,625 per year at a discount rate of 8%, if...

  1. What is the present value of $2,625 per year at a discount rate of 8%, if the first payment is received six years from now and the last payment is received 20 years from now?

PLEASE USE excel

Solutions

Expert Solution

Assuming the payment is first received in year 7:

If it is not the right answer then, assuming the first payment is received in the year 6:-


Related Solutions

a) What is the present value of $1,200 per year, at a discount rate of 8...
a) What is the present value of $1,200 per year, at a discount rate of 8 percent, if the first payment is received 9 years from now and the last payment is received 28 years from now? b) ABC Co. wants to sell you an annuity that will pay you $500 per quarter for 25 years. You want to earn a minimum rate of return of 5.1 percent. What is the most you are willing to pay today to buy...
What is the present value of $1,200 per year, at a discount rate of 8 percent,...
What is the present value of $1,200 per year, at a discount rate of 8 percent, if the first payment is received 9 years from now and the last payment is received 28 years from now?
What is the present value of RM2,400 a year at a discount rate of 8% if...
What is the present value of RM2,400 a year at a discount rate of 8% if the first payment is received 7years from now and you received a total of 25 annual payments?
What is the present value of $1,400 a year at a discount rate of 8 percent...
What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is received 7 years from now and you receive a total of 25 annual payments? Question 5 options: $9,417.69 $9,238.87 $9,333.33 $9,420.12 $9,881.72
What is the present value of $2,100 a year at a discount rate of 8 percent...
What is the present value of $2,100 a year at a discount rate of 8 percent if the first payment is received 7 years from now and you receive a total of 23 annual payments?
What is the present value of a perpetuity of $80 per year if the discount rate...
What is the present value of a perpetuity of $80 per year if the discount rate is 11%?
What is the present value of $1,700 per year, at a discount rate of 10 percent,...
What is the present value of $1,700 per year, at a discount rate of 10 percent, if the first payment is received 4 years from now and the last payment is received 21 years from now? Multiple Choice $2,625.04 $10,475.13 $14,042.40 $10,265.63 $10,245.41
What is the value today of $1,800 per year, at a discount rate of 8 percent,...
What is the value today of $1,800 per year, at a discount rate of 8 percent, if the first payment is received 4 years from now and the last payment is received 25 years from today?
7. What is present value of perpetuity of $100 per year if appropriate discount rate is...
7. What is present value of perpetuity of $100 per year if appropriate discount rate is 5%? If discount rate is increased to 15% what is the present value of the perpetuity?
What is the present value of $100 per month at a discount rate of 6%, if...
What is the present value of $100 per month at a discount rate of 6%, if the first payment is received 5 years from now and the last payment is received 18 years from now? Given a 6 percent discount rate compounded quarterly, what is the present value of a perpetuity of $100 per month if the first payment does not begin until the end of year five? You are planning to save for retirement over the next 25 years....
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT