Question

In: Finance

1. If you put up $37,000 today in exchange for a 8.25 percent, 19-year annuity, what...

1. If you put up $37,000 today in exchange for a 8.25 percent, 19-year annuity, what will the annual cash flow be?

Solutions

Expert Solution

Annual cash flow=Value of annuity*rate/(1-1/(1+rate)^n)=37000*8.25%/(1-1/(1+8.25%)^19)=3922.277


Related Solutions

1. If you put up $27,000 today in exchange for a 7.75 percent, 11-year annuity, what...
1. If you put up $27,000 today in exchange for a 7.75 percent, 11-year annuity, what will the annual cash flow be? 2. You want to have $63,000 in your savings account 8 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 7.7 percent interest, what amount must you deposit each year? 3. Prescott Bank offers you a $35,000, 8-year term loan at 10 percent...
If you put up $40,000 today in exchange for a 8.00 percent, 13-year annuity, what will...
If you put up $40,000 today in exchange for a 8.00 percent, 13-year annuity, what will the annual cash flow be?
If you put up $26,000 today in exchange for a 8.75 percent, 16-year annuity, what will...
If you put up $26,000 today in exchange for a 8.75 percent, 16-year annuity, what will the annual cash flow be?
If you put up $32,000 today in exchange for a 8.6 percent, 11-year annuity, what will...
If you put up $32,000 today in exchange for a 8.6 percent, 11-year annuity, what will the annual cash flow be? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
11. If you put $100 in the bank today, at 8 percent compound interest per year,...
11. If you put $100 in the bank today, at 8 percent compound interest per year, how much interest will you have earned at the end of 5 years? Group of answer choices a. $8 b. $23.47 c. $32.48 d. $46.93
1.)An annuity pays $7800 each year. It cost $58200 today. The interest rate is 4 percent....
1.)An annuity pays $7800 each year. It cost $58200 today. The interest rate is 4 percent. How many years is the annuity? 2.)An annuity pays $100 each year. It is worth $507.57 today. The annual interest rate is 5 percent. How many years is the annuity? 3.) Corp has a new manager. The compensation agreement calls for a single payment of $25,200,000 be paid after the first 9 years of work. Corp wants to invest an equal amount each year...
My annuity will pay me $4200 a year for 10 years in exchange for $30,000 today....
My annuity will pay me $4200 a year for 10 years in exchange for $30,000 today. What interest rate will you earn on this annuity?
You are considering an annuity which costs $100,000 today. The annuity pays $6,000 a year at...
You are considering an annuity which costs $100,000 today. The annuity pays $6,000 a year at the Beginning of each year. The rate of return is 4.5 percent. How many years of annuity payments will you receive? A. 24.96 years B. 29.48 years C. 28.73 years D. 33.08 years E. 38.00 years
On January 1 of this year, Bochini Corporation sold a $10 million, 8.25 percent bond issue.
On January 1 of this year, Bochini Corporation sold a $10 million, 8.25 percent bond issue. The bonds were also dated January 1, had a yield of 8 percent, pay interest each December 31, and mature 10 years from the date of issue. Prepare the journal entry to record the interest payment on December 31 of this year. Use effective-interest amortization and a premium account. Round time value factor to 4 decimal places. Enter your answers in dollars not in...
You put up $60 at the beginning of the year for an investment.The value of...
You put up $60 at the beginning of the year for an investment. The value of the investment grows TO $62.4 and you earn a dividend of $3.50. Your HPR was ____, capital gains yield was ____ and dividend yield was _____.  A.5.83%, 4%, 1.83%B.11%, 5%, 6%C.4%, 3%, 1%D.9.83%, 4%, 5.83%E.1.83%, 1%, 0.83%
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT