What is the present value of a perpetuity with payments starting one year from now. The first payment is $15,000. Assume a discount rate of 12%.
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A: Formula to compute future value of annuity due:
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A: Computation:
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Q: what is the present value of the perpetuity?
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A: PV of Annuity =P1-1(1+r)n r Where PV = Present Value r = rate of interest n = Number of Period P =…
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A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
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A: For the first year, payment = $15,000 For second year = $15,000 x 0.970 = $14,550 For third year =…
Q: What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is…
A: present value of a perpetuity = Annual payment/Discount rate
Q: What is the present value of a four-period annuity of $200 per year that begins two years from today…
A: Annual annuity amount = $200 Time Period = 4 years Discount Rate = 9%
Q: What is the future value of a 7%, 5-year annuity that pays $300 at the beginning of each year?
A: Given: Rate: 7% Annuity =300 Number of years = 5
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A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…
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A: Present value is the current value of future cash flow with respect to time value of money.
Q: What is the present value of a $775 annuity payment over six years if interest rates are 11 percent?
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Q: What is the present value of a perpetuity with payments starting one year from now. The first…
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A:
Q: Find the future value of an annuity due with an annual payment of $13,000 for three years at 5%…
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A: Payments occurring at the end of year means its a ordinary annuity.
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A: Given: Present value =$798No. of periods =11Annuity=$102
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A: Here, Annuity Amount is $10,000 Time Duration is 5 years Interest Rate is 11%
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A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
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A: Present value of an annuity the present value of future cashflows
What is the present value of a perpetuity with payments starting one year from now. The first payment is $15,000. Assume a discount rate of 12%.
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityWhat is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000 with the final payment? Use a nominal rate of 7.23%.What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are the same amount) in one year from now. Assume a discount rate of 5% and annual compounding.
- A perpetuity will pay $1000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the appropriate interest rate is 5%?What is the present value of a perpetuity that pays $50 annually and has an annual rate of return of 17%? note: round and show your answer to the nearest dollar.
- Calculate the present value of a perpetuity of $500 per year if the market interest rate is 6%.A perpetuity will pay $1,000 per year, starting five years after the perpetuity is purchased. What is the future value (FV) of this perpetuity, given that the interest rate is 3%?What is the present value of annual payments of $1,500 per year, at a discount rate of 10%, if the first regular annual annuity payment is received 3 years from today and continues for 15 years? Assume annual compounding.
- What is the present value of a four-period annuity of $200 per year that begins two years from today if the discount rate is 9%?What is the value of a 30-year annuity that pays $2500 a year? The annuity’s first payment will be received on year 11. Also, assume that the annual interest rate is 4 percent for years 1 through 10 and 5 percent hereafter.The present value of a 4-year annuity is $47,000. The first annual cash flow occurs one year from today. If the discount.rate is 4.8%, what is the payment amount? Enter your answer as a positive number, and round to the nearest penny.