You are set to receive an annual payment of $11,000 per year for the next 16...

You are set to receive an annual payment of $11,000 per year for the next 16 years. Assume the interest rate is 5.9 percent. How much more are the payments worth if they are received at the beginning of the year rather than the end of the year?

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jeff jeffy answered 1 year ago

You are set to receive an annual payment of $11,800 per year for the next 14...

You are set to receive an annual payment of $11,800 per year for the next 14 years. Assume the interest rate is 6.7 percent. How much more are the payments worth if they are received at the beginning of the year rather than the end of the year? a. $6820.28 b. $6600.28 c. $6270.26 d. $7392.31 e. $7040.29

You are set to receive an annual payment of 10600 per year for the next 12...

You are set to receive an annual payment of 10600 per year for the next 12 years. Assume the interest rate is 5.5 percent. How much more are the payments worth if they are received at the beginning of the year rather than the end of the year

You are set to receive an annual payment of 1330$ per year for ever. Assume the...

You are set to receive an annual payment of 1330$ per year for ever. Assume the interest rate is 15%. What is the future value of this amount? a) 1156.52 b)1130.50 c)1564.71 d)1529.50

Dr.Arrowhead will receive $150,000 per year for the next 20 years as an ordinary annuity payment...

Dr.Arrowhead will receive $150,000 per year for the next 20 years as an ordinary annuity payment for a high-tech slingshot weapon he invented. If a 6 percent rate is applied, should he be willing to sell out his future rights now for $2,000,000?

You are scheduled to receive an annual payment of $3,600 in oneyear. This payment will...

You are scheduled to receive an annual payment of $3,600 in one year. This payment will increase by 4% annually forever (you are going to receive the payments at the end of each year forever). The discount rate is 10 percent. What is the present value of these cash flows?

Suppose you are going to receive $11,000 per year for 7 years. The appropriate interest rate...

Suppose you are going to receive $11,000 per year for 7 years. The appropriate interest rate is 7 percent. a. What is the present value of the payments if they are in the form of an ordinary annuity? b. What is the present value if the payments are an annuity due? c. Suppose you plan to invest the payments for 7 years, what is the future value if the payments are an ordinary annuity? d. Suppose you plan to...

You will receive $5,000 a year in real terms for the next 5 years. Each payment...

You will receive $5,000 a year in real terms for the next 5 years. Each payment will be received at the end of the period with the first payment occurring one year from today. The relevant nominal discount rate is 9.625 percent and the inflation rate is 2.3 percent. What are your winnings worth today in real dollars? Question 8 options: $20,413 $19,367 $20,781 $21,500 $19,137

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

Assume you are to receive a 10-year annuity with annual payments of $800. The first payment...

Assume you are to receive a 10-year annuity with annual payments of $800. The first payment will be received at the end of year 1, and the last payment will be received at the end of year 10. You will invest each payment in an account that pays 7 percent compounded annually. Although the annuity payments stop at the end of year 10, you will not with draw any money from the account until 20 years from today, and the...

You will be paying $11,000 a year in tuition expenses at the end of the next...

You will be paying $11,000 a year in tuition expenses at the end of the next two years. Bonds currently yield 9%. a. What is the present value and duration of your obligation? b. What maturity zero-coupon bond would immunize your obligation? c. Suppose you buy a zero-coupon bond with value and duration equal to your obligation. Now suppose that rates immediately increase to 10%. What happens to your net position, that is an increase or decrease in value, to...

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