An author just signed a lucrative contract with a publisher that offers to pay her the amount of $500 at the end of year 8 when the book is scheduled to be released. The author, being profligate, desires to receive a different package: an immediate payment of $100 that is followed by an annuity (an equal amount) to be paid at the end of each year for 8 consecutive years. What annuity will make his package equivalent to the publisher's advance. Use an interest rate is 5.00%. $ Place your answer in dollars and cents. Do not use a dollar sign. Work answers out to at least 4 decimal points of accuracy.

An author just signed a lucrative contract with a publisher that offers to pay her the amount of $500 at the end of year 8 when the book is scheduled to be released. The author, being profligate, desires to receive a different package: an immediate payment of $100 that is followed by an annuity (an equal amount) to be paid at the end of each year for 8 consecutive years. What annuity will make his package equivalent to the publisher's advance. Use an interest rate is 5.00%. $ Place your answer in dollars and cents. Do not use a dollar sign. Work answers out to at least 4 decimal points of accuracy.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

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