An investor is considering an annuity that pays $40,000 per year for four years. 1. Assuming the first $40,000 is paid in a years time given a discount rate of 4% what should the investor pay for this annuity today? 2. Assuming the first $40,000 is paid out immediately what should the investor pay today? (Asssume same discount rate). 3. If the investor pays $130,000 today and assuming the first paymentarrives in a years time, what would this investment’s internal rate of return be? (Asssume same discount rate). 4. What would the investor pay today if the first payment arrived in 5years time? (Asssume same discount rate). 5. If the investor invests $40,000 per year at the end of the next 4 years what would this be worth in 4 years time? (Asssume same discount rate).
An investor is considering an
1. Assuming the first $40,000 is paid in a years time given a discount rate of 4% what should the investor pay for this annuity today?
2. Assuming the first $40,000 is paid out immediately what should the investor pay today? (Asssume same discount rate).
3. If the investor pays $130,000 today and assuming the first paymentarrives in a years time, what would this investment’s
4. What would the investor pay today if the first payment arrived in 5years time? (Asssume same discount rate).
5. If the investor invests $40,000 per year at the end of the next 4 years what would this be worth in 4 years time? (Asssume same discount rate).
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