An insurance company is offering quarterly payments of $720 for the next 25 years inexchange for a one-time payment of $18,000 today. What is the per annum rate of return onthis offer? (Round to nearest 100th of a percent and enter your answer as a percentage, forexample, as)

Calculate the rate of return per annum using Excel as follows:Formula sheet:Notes:To understand the…

Answered: An insurance company is offering…

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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What is the future value of $775 deposited for one year earning an 8 percent interest rate annually? Note: Do not round intermediate calculations. Enter your answer as a whole number. Future value
Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $800 per month for 15 years, if the account earns 5% per year and if there is to be $10,000 left in the annuity at the end of the 15 years PV = $
Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $1,600 per month for 15 years, if the account earns 7% per year
You will receive a cash payment of $7554 in 8 years. If the relevant interest rate is 15.34%, how much is it worth today? Round to 2 decimal places. Include dollar signs ($) and percents (%) as appropriate.
Find the future value (in $) of an ordinary annuity of $700 paid at the end of every 6-month period for 10 years, if it earns interest at 16% compounded semiannually. (Round your answer to the nearest cent.)
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An insurance company is offering quarterly payments of $720 for the next 25 years in exchange for a one-time payment of $18,000 today. What is the per annum rate of return on this offer? (Round to nearest 100th of a percent and enter your answer as a percentage, for example, as)