Question

In: Finance

How much would you pay today for an investment that pays $0 annually, but earns 8%...

How much would you pay today for an investment that pays $0 annually, but earns 8% annual interest and has a $13,500 face value at the maturity at the end of 4 years?

Solutions

Expert Solution


Related Solutions

How much would you be willing to pay today for an investment that promises to pay...
How much would you be willing to pay today for an investment that promises to pay you pay $26,000 in 35 years if your required return on the investment is 9% per year?
How much would you pay today for an investment that provides you $2,830 each year for...
How much would you pay today for an investment that provides you $2,830 each year for the next 6 years, starting next year, and $11,126 12 years from now if the interest rate is 3.89% APR compounded annually?
How much would you be willing to pay for an investment that will pay you and...
How much would you be willing to pay for an investment that will pay you and your heirs $16,000 each year in perpetuity if the first payment is to be received in 9 years? a) Assuming your opportunity cost is 6%? b) if you want the payments to grow by 2% indefinitely. problem must be in excel
Q1) Suppose you invest $104,105 today in an account that earns 08.00% interest annually. How much...
Q1) Suppose you invest $104,105 today in an account that earns 08.00% interest annually. How much money will be in your account 10 years from today? Q2) What is the value today, of single payment of $28,298 made 17 years from today, if the value is discounted at a rate of 25.00%? Q3) How many years would it take an investment of $763 to grow to $11,610 at an annual rate of return of 18.00%? Q4) How much money would...
Q1) Suppose you invest $20,958 today in an account that earns 02.00% interest annually. How much...
Q1) Suppose you invest $20,958 today in an account that earns 02.00% interest annually. How much money will be in your account 19 years from today? Q2) What is the value today, of single payment of $6,189 made 12 years from today, if the value is discounted at a rate of 14.00%? Q3) How many years would it take an investment of $264 to grow to $2,845 at an annual rate of return of 08.00%? Q4) How much money would...
you deposit $500 today in a savings account that pays 6% interest, compounded annually. How much...
you deposit $500 today in a savings account that pays 6% interest, compounded annually. How much will your account be worth at the end of 40 years?
How much are you going to pay? How much insurance company pays?
  Use the following information to answer the following questions deductible: $1000 coinsurance: 20% out-of-pocket maximum: $8000 let's say you have $30000 in covered medical expenses in January: How much are you going to pay? How much insurance company pays? if you have an additional $20000 in medical expenses: how much are you going to pay? how much insurance company pays?
How much would you pay for a treasury bill that matures in one year and pays...
How much would you pay for a treasury bill that matures in one year and pays $10,000 if you require a 3% discount rate (excel version please).
Today, you invest $5,000 in an investment that pays 3% per year. How much will your...
Today, you invest $5,000 in an investment that pays 3% per year. How much will your investment be worth in 5 years?
Your investment account pays 8.2%, compounded annually. If you invest $5,000 today, how many years will...
Your investment account pays 8.2%, compounded annually. If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20? Select the correct answer. a. 9.15 b. 12.15 c. 7.65 d. 6.15 e. 10.65 One year ago Lerner and Luckmann Co. issued 15-year, noncallable, 8% annual coupon bonds at their par value of $1,000. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT