When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers onher grave every Sunday as long as he lived. The week after she died in 1962, a bunch offresh flowers that the former baseball player thought appropriate for the star cost about$5. Based on actuarial tables, "Joltin' Joe" could expect to live for 33 years after theactress died. Assume that the EAR is 10.4 percent. Also, assume that the price of theflowers will increase at 3.8 percent per year, when expressed as an EAR. Assuming thateach year has exactly 52 weeks, what is the present value of this commitment? Joebegan purchasing flowers the week after Marilyn died. OOOOO$3,480.20$3,663.37$3,553.47$3,846.54$3,773.27

Initial price (P) = $5Interest rate = 10.4% per annum Growth rate = 3.8% per annumBoth these rates…

When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers o her grave every Sunday as long as he lived. The week after she died in 1962, a bunch c fresh flowers that the former baseball player thought appropriate for the star cost abou $5. Based on actuarial tables, "Joltin' Joe" could expect to live for 33 years after th actress died. Assume that the EAR is 10.4 percent. Also, assume that the price of th flowers will increase at 3.8 percent per year, when expressed as an EAR. Assuming tha each year has exactly 52 weeks, what is the present value of this commitment? Jo began purchasing flowers the week after Marilyn died.

When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers o her grave every Sunday as long as he lived. The week after she died in 1962, a bunch c fresh flowers that the former baseball player thought appropriate for the star cost abou $5. Based on actuarial tables, "Joltin' Joe" could expect to live for 33 years after th actress died. Assume that the EAR is 10.4 percent. Also, assume that the price of th flowers will increase at 3.8 percent per year, when expressed as an EAR. Assuming tha each year has exactly 52 weeks, what is the present value of this commitment? Jo began purchasing flowers the week after Marilyn died.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $10. Based on actuarial tables, “Joltin’ Joe” could expect to live for 25 years after the actress died. Assume that the EAR is 8.8 percent. Also, assume that the price of the flowers will increase at 3.7 percent per year, when expressed as an EAR. Assume that each year has exactly 52 weeks and Joe began purchasing flowers the week after Marilyn died. What is the present value of this commitment? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every Sunday as long as he lived. The week after she died in 1962, a bunch of fresh flowers that the former baseball player thought appropriate for the star cost about $6. Based on actuarial tables, "Joltin' Joe" could expect to live for 36 years after the actress died. Assume that the EAR is 11.4 percent. Also, assume that the price of the flowers will increase at 4.7 percent per year, when expressed as an EAR. Assuming that each year has exactly 52 weeks, what is the present value of this commitment? Joe began purchasing flowers the week after Marilyn died. Please answer fast i give you upvote.
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