Check my workCarrie Tune will receive $27750 for the next 5 years as a payment for a new song she has written. Use Apnendix D for anapproximate answer, but calculate your final answer using the formula and financial caiculator methodso. What is the present value of these payments if the discount rate is 7 percent? (Do not round intermediate calculations. Roundyour final onswer to 2 decimal places.)17.Present valueb. Should she be willing to sell out her future rights now for $161.000?O YesO No

Present Value Interest Factor of an Annuity is a factor used to calculate the present value of a…

Carrie Tune will receive $27750 for the next 5 years as a payment for a new song she has written. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods e. What is the present value of these payments if the discount rate is 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value b. Should she be willing to sell out her future rights now for $161.000? O Yes O No

Carrie Tune will receive $27750 for the next 5 years as a payment for a new song she has written. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods e. What is the present value of these payments if the discount rate is 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value b. Should she be willing to sell out her future rights now for $161.000? O Yes O No

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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Sam is negotiating to purchase an annuity of $50 000 p.a. for 10 years. Funds currently earn 6% p.a. To sweeten the deal, the supplier offers (a) to make it an annuity due (with 10 payments in total) or (b) to add an extra payment of $10 000 to be paid immediately. Which is the better deal for Sam, if the price remains the same? Please do fast ASAP fast
Dan is planning to buy a new home that costs $130000 Find the following if Dan make a 5% downpayment. How much will Dan's down payment be? (Round to the nearest cent) How much will Dan owe after he makes the down payment? (Round to the nearest cent)
Jane Bauer has won the lottery and has the following four options for receiving her winnings: Receive $100,000 at the beginning of the current year Receive $108,000 at the end of the year Receive $20,000 at the end of each year for eight years Receive $10,000 at the end of each year for 30 years Jane can invest her winnings at an interest rate of 8% compounded annually at a major bank. Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1 Calculate the Present value for each of the above options. Round all answers to the nearest dollar. Present Value Option 1 $fill in the blank 1 Option 2 $fill in the blank 2 Option 3 $fill in the blank 3 Option 4 $fill in the blank 4 Which of the payment options should Jane choose?
Assume that Aliza has a winning lottery ticket and she are the given the option of accepting the value of P1,000,000 paying interest three years from now or taking the present value of the P1,000,000 now. The sponsor of the prize is using a 6% interest and discount rate. a. If she choose to receive the present value of the prize now, how much will she receive? b. If she choose to receive the value 3 years from now, how much will she receive? c. Which of the options will give her higher amount?
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Mary Smith plans to buy a truck for $20,000 after two years if the interest rate is 4% how much money should Mary set aside today for the purchase
It is with deep regret that I inform you that your rich uncle just passed away. His money is tied up in an investment. However, we can sell the investment and give you $15,000 today, or you will receive $20,000 in 5 years when the investment matures. Which would you choose? Use March 2023’s inflation rate (5%)
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Pete Air wants to buy a used Jeep in 5 years. He estimates the Jeep will cost $15,300. Assume Pete invests $10,300 now at 10% interest compounded semiannually. a. Calculate the maturity value of the investment. (Use the Table 12.1 provided.) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Maturity value b. Will Pete have enough money to buy the Jeep at the end of 5 years? Yes No.
Your uncle offers you a choice of $106,000 in 10 years or $43,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 9 percent, what is the present value of the $106,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value a-2. Which offer should you choose? $106,000 after 10 years O $43,000 today
Emily Amarrada of Sioux City, South Dakota has accepted a new job and is thinking about cashing out the $36,000 she has built up in her employer's 401(k) plan to buy a new car. If, instead, she left the funds in the plan and they are projected to earn 3 percent annually for the next 30 years, how much would Emily have in her plan? Round Future Value of a Single Amount in intermediate calculations to four decimal places
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