MBA 655 Financial Management & Strategy (2243-1) Week 4 quiz

What is the present value of a perpetuity of $8,447 per year given an interest rate of 8.2%, assuming that the first cash flow occurs today (that is, in year 0)? Record your answer as a dollar amount rounded to 2 decimal places , but do not include a dollar sign or any commas in your answer . For example , enter $ 12,327.24987 as 12327.25 .

If you were to put $1,000 in the bank each year for the next 10 years at 6% interest, which table would you use to find the ending balance in your account? Group of answer choices Future value of $1 Present value of an annuity of $1 Future value of an annuity of $1 Present value of $1

You will receive a cash flow 8 years from now and at the end of every year after that in perpetuity. If this perpetuity has a value of $6,865 at year 7 and you require 6.3% return, how much must each cash flow after year 7 be? Enter your answer as a number with four decimal places and without the currency symbol. For example, if your answer is $90.1234, enter 90.1234

Subject: finance

Everything is the same as in Question 5, but the annuity you buy has COLA's of 2% per annum. (That is, the payments increase every year by 2%). What is the initial value of the income you receive from the annuity on 1st January 2050? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $97,929.30 b $97,929.31 c $97,929.32 d $97,929.33

You are calculating the present value of $1,000 that you will receive five years from now.Which table will you use to obtain the present value factor to multiply to calculate thepresent value of that $1,000?a. Present Value of $1 tableb. Future Value of $1 tablec. Present Value of Ordinary Annuity of $1d. Future Value of Ordinary Annuity of $1

What is the present value of a cash payment of $1.2 that you will receive in 5.3 years if the interest rate is 6.5%?  Round to 2 decimal places.  Include dollar signs ($) and percents (%) as appropriate.

q5. An investment product will provide a cash flow of $613 at the end of each year for the following 18 years. At a discount rate of 8 percent, what does this investment worth to you today? Answer: $ q6. If you purchase an investment at $51,401 today, in return, you will receive a(n) 12 percent, 20 - year annuity. What will the annual cash flow be? Answer: $ q7. Your bank account offers an annual interest rate of 1.0% that compounds monthly. What is the effective annual rate (EAR) for your account

Haresh

Its one question only ple do both parts

What is the value today of an annuity of $5,900 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 8 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value today           $

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Give typing answer with explanation and conclusion

A new investment opportunity for you is an annuity that pays $650 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? Select the correct answer.   a. $1,903.81     b. $1,885.91     c. $1,850.11     d. $1,832.21     e. $1,868.01

Using ume value of money tables, calculate the following. (Exhibit 1-A, Exhibit 1-B, Exhibit 1-C., Exhibit 1-D) Note: Use approprlate factor(s) from the tables provided. a. The future value of $490 six years from now at 5 percent. b. The future value of $600 saved each year for 10 years at 7 percent c. The amount a person would have to deposit today (present value) at an interest rate of 7 percent to have $900 five years from now. d. The amount a person would have to deposit today to be able to take out $600 a year for 10 years from an account earning 9 percent. Complete this question by entering your answers in the tabs below. The future value of $600 saved each year for 10 years at? percent. Noter Round time value factor to 3 decimal place and finafapswes to 2 decimal places.

PROVIDE A SOLUTION PLS. THANK YOU!

Please solve using a TIMELINE not excel. Please

For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (/= interest rate, and n= number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) 1. $ 2 3 4. 15 Present Value Answer is complete but not entirely correct. Annuity Amount 2.200 145,000 190,000 72.523 45,787 8,784 558,865 480,945 520,000 240,000 8% 1.0% 9% 2.5% 10% n= 5 4 30 8 4

Suppose you receive $100 at the end of each year for the next 3 years.  a) if the interest rate is 8%, what is the present value of the cash flows? b) what is the future value in 3 years of the present value you compute in a? c) suppose you deposit the cash flows in a bank account that pays 8% interest in a year.  What is the balance in the account at the end of each of the nest 3 years (after your deposit is made)?  How does the final bank balance compare with your answer in b?

Suppose you just won the state lottery, and you have a choice between receiving $4,500,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes. Select the correct answer.   a. 1.83%     b. 0.23%     c. 1.43%     d. 0.63%     e. 1.03%

3. To find the present value of a sum of sh. 10,000 to be received at the end of each year for the next 5 years at 10% rate, we use:       A. Present value of a single cash flow table       B. Present value of annuity table.       C. Future value of a single cash flow table       D. Future value of annuity table