1. Suppose that you will receive annual payments of $27,400 for a period of 20 years....

1. Suppose that you will receive annual payments of $27,400 for a period of 20 years. The first payment will be made 6 years from now. If the interest rate is 8.00%, what is the value of the annuity in year 5, what is the current value of this stream of cash flows? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

a) Value of security in year 5?

b) Value of security today?

2. The $70.0 lottery payment that you just won actually pays $2.8 million per year for 25 years. If the discount rate is 8.50% and the first payment comes in one year

a) What is the present value of the winnings? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

b) What is the present value of the winnings, if the first payment comes immediately? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Expert Solution

jeff jeffy answered 1 year ago

8. You are scheduled to receive annual payments of $60,000 for each of the next 20...

8. You are scheduled to receive annual payments of $60,000 for each of the next 20 years. The annual rate of return is 8 percent. What is the difference in the future value in year 20 if you receive these payments at the beginning of each year rather than at the end of each year? 9. You make the following deposits for the next five years into an investment account. All deposits are made at the end of the year...

You are scheduled to receive annual payments of $8,500 for each of the next 21 years....

You are scheduled to receive annual payments of $8,500 for each of the next 21 years. The discount rate is 8.0 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

You are scheduled to receive annual payments of $9,600 for each of the next 24 years....

You are scheduled to receive annual payments of $9,600 for each of the next 24 years. The discount rate is 8.0 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year? $9,600.00 $10,368.00 $8,554.57 $9,279.36 $8,086.09

You are scheduled to receive annual payments of $3,600 for each of the next 12 years...

You are scheduled to receive annual payments of $3,600 for each of the next 12 years (you are going to receive the payments at the end of each year). The discount rate is 10 percent. What is the present value of these cash flows? Round the answer to two decimal places.

You are scheduled to receive annual payments of $8,700 for each of the next 23 years....

You are scheduled to receive annual payments of $8,700 for each of the next 23 years. The discount rate is 8.0 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year? a. $7,642.82 b. $8,409.42 c. $9,396.00 d. $8,700.00 e. $7,218.26

For the next 30 years, you will receive annual payments of $10,000/year. The difference in the...

For the next 30 years, you will receive annual payments of $10,000/year. The difference in the present value terms if you receive these payments at the beginning of each year rather than at the end of each year is closest to what value? Assume the discount rate is 6% APR 8150 8300 7850 8000 8450

You are scheduled to receive annual payments of $8,600 for each of the next 27 years....

You are scheduled to receive annual payments of $8,600 for each of the next 27 years. The discount rate is 7.0 percent. What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

You will receive annual payments of $15,000 for the next 25 years. You would like to...

You will receive annual payments of $15,000 for the next 25 years. You would like to have your money today instead of waiting of waiting 25 years to receive it all. What is the equivalent value of this future stream of payments if the appropriate discount rate is 8%? A. 148,421.91 B. 160,121.64 C. 183,926.48 D. 201,448.72

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You will receive 28 annual payments of $42,500. The first payment will be received 7 years...

You will receive 28 annual payments of $42,500. The first payment will be received 7 years from today and the interest rate is 7.1 percent. What is the value of the payments today?

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