3)Suppose that a stream of equal payments of amount $25000 per year is to continue in perpetuity. At the interest rate of 10% compute: a. the present value of this entire stream of benefits. b. the present value of the benefits beginning at the end of the 100th year. c. the present value of the first 100 years of benefits.

Q: POSSIBLE PO Sofia receives a text message from her bank. All of the following indicate that the text…

A: In the banking sector, there are chances that people may face scam due to any fake call or message…

Q: Every year you deposit $2,000 into an account that earns 2% interest per year. What will be the…

A: Answer; Correct Option is (b) 180000

Q: Marisela deposited $ 700 in a savings account that pays her 4% interest quarterly, How much money…

A:

Q: Given that Stephanie’s bank offers an interest rate of 6% per year, what additional amount should…

A: Purchasing stock to invest in entails acquiring ownership interests in public companies. The little…

Q: (a) Formulate the Savings Account Balance as a difference equation model. (b) Compute the…

A: A young couple looking to buy a property together currently have savings of $10,000 in a bank…

Q: c.​If you borrowed that $20,000 to be paid back over13 years at 9%, what are your annual payments?…

A: A loan is a form of borrowed amount incurred by an individual or other entity to be repaid in the…

Q: If Charlie invests $50,000 in a cheese company today and is offered a 5% interest rate. How much…

A:

Q: 2) The real GDP of the U.S. economy was $19,222.0 billion at the end of 2019. (a) Calculate the real…

A: Real GDP in 2019 = 19,222 Billion $ Time = 5 years When growth rate is 3% per year Real GDP after…

Q: The interest rate is 15% per year, compounded annually.

A: Given cashflows for 5 years interest rate = 15 % Net present value = cashflow each year / (1 +…

Q: Astrid makes an investment with a zero net present value. She pays $900 today, and receives $400 one…

A: Cash flow refers to the quantity of money that a business gets or transfers to its debtors in the…

Q: 2) An annuity due in perpetuity pays X at the beginning of each year for 10 years and starting at…

A: Given the information: Present value = $3000 g = 2% i = 5% time, t= 10

Q: Solve all parts with proper calculation and explanation

A: In this problem, the dependent variable (y) is the insurance policy because it is the variable that…

Q: b. An engineering advance induces many firms to upgrade their computer systems.

A: An up gradation of computer system will increase the firms efficiency of raising and maintain the…