A ten-year security pays cash flows of $1,000 a year at the end of each of the next five years four years t-6, 7, 8, 9) Ten years from now 10) the security will mature and pay $10,000 pay for years 6 through 97 -1,2,3,4,5) After the fifth year, the security pays some constant cash flow at the end of the next The security sells for $30,000 and promises a rate of retum of 6% What annual cash flow does the seco
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![A ten-year security pays cash flows of $1,000 a year at the end of each of the next five years t 1, 2, 3, 4, 5) After the fifth year, the security pays some constant cash flow at the end of the next
four years (t-6, 7, 8, 9) Ten years from now (t-10) the security will mature and pay $10,000. The security sells for $30,000 and promises a rate of return of 6%. What annual cash flow does the secur
pay for years 6 through 97
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- A 30-year security has a price of $19,759.12. The security pays $ 1,000 at the end of each of the next 10 years, and then it pays a different fixed cash flow amount at the end of each of the following 10 years. Finally, in years 21 - 30 it pays $4,000 per year at year end. Interest rates are 8.0%. What is the annual cash flow amount between years 11 and 20?You are considering an investment in a 40-year security. The security will pay $25 a year at the end of each of the first three years. The security will then pay $30 a year at the end of each of the next 20 years. The nominal interest rate is assumed to be 8%, and the current price (present value) of the security is $360.39. Given this information, what is the equal annual payment to be received from Year 24 through Year 40 (for 17 years)?You are considering an investment in a 40-year security. The security will pay $25 a year at the end of each of the first three years. The security will then pay $30 a year at the end of each of the next 20 years. The discount rate is assumed to be 8 percent, and the current price (present value) of the security is $360.39. Given this information, what is the equal annual end-of-year payment to be received from year 24 through year 40
- A security pays you an annual amount of $900 for 10 years. the sellerof the security require the first payment to be made today and the last payment to be made 9 years from today. Interest rate on this security is 5.75 percent perannum. Calculate the present value rounded to 2 decimaal places.1 a) A security pays you an annual amount of $900 for 10 years. The seller of the security requires the first payment to be made today and the last payment to be made 9 years from today.Interest rate on this security is 5.75 percent per annum. Calculate the present value rounded to2 decimal places. b) An investment promises to pay into an account that pays you 6 percent annually, $150 per month for the next twenty-two years. Suppose the first deposit into the account is made onemonth from today what is the value of the amount which will be in the account at the end of thirty years? Rounded to 2 decimal placesYou are investigating an investment opportunity. The security requires you to make monthly payments of $100 each ( 1^("st ") payment is 1 month from today), over the next 10 years. It offers a nominal annual return of 6% with quarterly compounding. What is the future value of this security at the end of its life (including all your payments and all interest)
- 1.A security pays you an annual amount of $900 for 10 years. The seller of the security requires the first payment to be made today and the last payment to be made 9 years from today. Interest rate on this security is 5.75 percent per annum. Calculate the present value rounded to 2 decimal places. 2.An investment promises to pay into an account that pays you 6 percent annually, $150 per month for the next twenty-two years. Suppose the first deposit into the account is made one month from today what is the value of the amount which will be in the account at the end of thirty years? Rounded to 2 decimal places. 3.What will be the present value, if $5,400 is discounted back 4 years at an interest rate of 3% compounded semi-annually? 4.You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have negotiated a nominal interest rate of 12 percent and you plan to pay-off the car over five years. What is the monthly payments you must make on this loan?1. A security pays you an annual amount of $900 for 10 years. The seller of the security requires the first payment to be made today and the last payment to be made 9 years from today. Interest rate on this security is 5.75 percent per annum. Calculate the present value rounded to 2 decimal places. 2. An investment promises to pay into an account that pays you 6 percent annually, $150 per month for the next twenty-two years. Suppose the first deposit into the account is made one month from today what is the value of the amount which will be in the account at the end of thirty years? Rounded to 2 decimal places. 3. What will be the present value, if $5,400 is discounted back 4 years at an interest rate of 3% compounded semi-annually?A security pays you an annual amount of $900 for 10 years. The seller of the security requires the first payment to be made today and the last payment to be made 9 years from today. Interest rate on this security is 5.75 percent per annum. Calculate the present value rounded to 2 decimal places. Using a financial calculator
- A security pays $800 every 8 years forever. The appropriate discount rate is 2% (EAR). What is the value of the security if the first payment occurs 5 years from now?An insurance company is offering to sell an annuity for $20,000 cash. In return the firm will guarantee to pay the purchaser 20 annual endof-year payments, with the first payment amounting to $1100. Subsequent payments will increase at a uniform 10% rate each year (second payment is $1210; third payment is $1331, etc.). What rate of return would someone who buys the annuity receive?1. If you invest $1,000 today in a security paying 8 percent compounded quarterly, how much will the investment be worth seven years from today? 2. If you invest $20,000 in a security today, how much will it be worth in six years? The security pays 6 percent compounded monthly.
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