If the rate of inflation is 6.5%, what nominal interest rate is necessary for you to earn 3.3% real interest rate on your investment?

Assume that the real rate of interest is 2.00 % and the inflation rate is 6.00% What is the value today (i.e. , in Year ) of receiving 12,895.00 exactly 12 years from today ?

5. Present value of annuities and annuity payments The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $500 at the beginning of every six months An annuity that pays $1,000 at the end of each year An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the beginning of each year You bought an annuity selling at $2,867.74 today that promises to make equal payments at the beginning of each year for the next twelve years (N). If the annuity's appropriate interest rate (1) remains at 9.50% during this time, then the value of the annual annuity payment (PMT) is $375.00 You just won the lottery. Congratulations! The jackpot is $35,000,000, paid in twelve equal annual payments. The first payment on the…

Consider a perpetuity with a coupon of 100. Imagine that the perpetuity is purchased at time t when the market interest rate is equal to 5%. Furthermore, imagine that the coupon income is taxed at 40% and that capital gains are taxed at 20%. What is the after tax rate of return if the perpetuity is sold at time t+1 when the market interest rate continues to be equal to 5%? 0% O 2% 5% None of the above

Suppose that the interest rate is 5%. ކ އތރ What is the value of the discount factor, v? U=数字 Enter a value correct to 6 decimal places What is the rate of discount, d? d = 7 Enter a percentage correct to 2 decimal places A payment of £410 will be made in 8 years. What is the present value of this payment? £ 数字 Enter a value correct to 2 decimal places

At an interest rate of 6%, how long will it take to 4x your money? PLEASE BREAK DOWN INTO 2 DECIMAL PLACES

Suppose that the interest rate is 1%. What is the value of the discount factor, v? V= 数字 Enter a value correct to 6 decimal places What is the rate of discount, d? d 数字 Enter a percentage correct to 2 decimal places A payment of £800 will be made in 3 years. What is the present value of this payment? £ 数字 Enter a value correct to 2 decimal places

Suppose Snli 40 and (1 + i)n = 3.7, where i is an effective annual interest rate. What is the present value of an annuity-immediate which has annual payments of 150 for 3n years?

What is the Discounted Present Value (DPV) if you expect to receive $8,000 in year 1, $9,000 in year 2 and $7,000 in year 3, when the interest rate is 8% in each year? Round your answer to one (1) decimal, do not write the dollar sign. Use the minus sign where appropriate.

If the compounding frequency is monthly and the discount factor=0.62026, what is the value of the corresponding annual interest rate?  What is the corresponding continuous compounding annual interest rate if the discount factor remains at 0.62026?