Tommy will receive a royalty payment of $ 28699 per year for the next 25 years, beginning one year from now, as a result of an app he has developed. If a discount rate of 6 percent is applied, how much are the future rights worth now?

Q: Derek has the opportunity to buy a money machine today. The money machine will pay Derek $35,347.00…

A: Derek willing to pay for this money machine today would be present value of amount receivable in 11…

Q: ustomers buy this product on their 65th birthday when they retire. The annuity will make 20 annual…

A: There is need of proper planning for retirement so if done properly on time than will have good…

Q: Heather will receive $13,000 at the end of every year for the next 15 years as a payment for a new…

A: PV analysis = Present value analysis help to find out the aggregate Cash Flow associated with…

Q: Ramanujan has been awarded a bonus for his outstanding work, His employer offers him a choice…

A: Annuity = RM 1250 Time =5 years Rate =9% So, the cashflow looks like -  year 0 1 2 3 4 5…

Q: Chester hopes to earn $1200 in interest in 2.5years time from $60,000 that he has available to…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: Jason has just won the lottery and will receive an annual payment of $140,000 every year for the…

A: To find the present value of Jason's lottery winnings, we can use the Present Value Interest Factor…

Q: Baxter desires to purchase an annuity on January 1, 2023, that yields him five annual cash flows of…

A: Number of Payment = n = 5Payment = p = $11,000Time = t = 2Interest Rate = r = 10%

Q: If the Alfa Life Insurance Co. will pay you and your heirs $1 at the beginning of each year forever,…

A: In this question we need to calculate the Present value of perpetuity i.e. amount you will pay for…

Q: obi owns a perpetuity that will pay $1,000 a year, starting one year from now. He offers to sell you…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…

A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: will receive a perpetuity of $34,000 per year forever, while curly will receive the same annual…

A: Present value is the equivalent value of money today of the future money based on the time value of…

Q: If Mr. Peter Parker gets a pension contribution each year BDT 20000  , how many years it will need…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A municipal engineer is evaluating two alternatives for adding capacity to the water supply system…

A: Capitalized cost is the present value of all cost including the initial cost and annual cost of…

Q: Anita is considering the purchase of a five year annuity of 10 semiannual payments of $6,000 made at…

A: Annuity refers to the fixed amount to be received by the insurer for the rest of the life against…

Q: Assume that today is January 1, 2022, and that you just turned 25 years old. You plan to retire when…

A: Amount of required in the retirement account as on the date of retirement is the present value of…

Q: You want to purchase an annuity on your 30th birthday to provide you with $15,000 semiannual annuity…

A: present value of annuity we need to calculate  pv = 15000[1/0.05 - 1/0.05(1+0.05)40]       =…

Q: Quokka recently won the lottery and has the opportunity to receive $200,000 per year at the end of…

A: Fair value accounting is a process of recording assets and liabilities of the company at the market…

Q: You will receive an inheritance of 116034 in 10 years.  If the interest rate is 3.8%, how much is it…

A: Time value of money is one of the important concept in finance. It says that a dollar amount…

Q: An inheritance provides you with a $52,000 per year payment for the next 40 years. A 6.00% discount…

A: a) Present value annuity (PV) of an inheritance payment (P) of $52,000 for a period (n) of 40 years…

Q: Anuonyam plans to deposit GH¢80 in an account at the end of each of the next 20 years. If the…

A: Principal = GH¢80 Time = 20 years Rate = 17% Future value = ?

Q: Bill will receive a royalty payment of $18,000 per year for the next 25 years, beginning one year…

A: The present value of the future royalty payments can be calculated using the following…

Q: Roger Baker has accumulated $775,000 in his RRSP and is going to purchase a 20-year annuity from…

A: An Annuity is simply a fixed amount which will be received by Roger Baker at every month-end Present…

Q: o acquires a loan of $300,000 to be paid off during 6 years with monthly payments. If the…

A: Monthly payments are equal fixed amount of payment that carry the payment for interest and loan but…

Q: When Jasmine retires she has $950,000 in a retirement account that earns 6% annual interest,…

A: Using PMT function in excel

Q: A trust notifies you that you are entitled a grant that would give you annual payments of $6,200 per…

A: Answer: Calculation of the present value of the grant: The present value of the grant will be equal…

Q: CHAR is offered an annuity that will pay P24,000 per year for 11 years (the first payment will occur…

A: Annual payment (P) = P24,000 Period (n) = 11 Interest rate (r) = 13%

Q: I want to have 6000000 when I retire on April 18, 2055. I plan on making annual equal payments…

A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…

Q: TA Corp. has a consulting contract with a firm that states that he will receive annual payments of…

A: We need to use present value of annuity due(payment due at beginning of year) formula for…

Q: Suppose you are a beneficiary designated to immediately receive P8674 each year for 10 years,…

A: Annuity means a series of annual payments are being made or received. Annuity can be ordinary…

Q: Suppose today you signed a contract for a special assignment over the next 6 years. You will be paid…

A: Present value is the current value of future benefits at specified rate of interest. It is a capital…

Q: Gabry Ponte has a contract in which he will receive the following payments for the next five years:…

A: Time value of money is a concept where we consider interest eliminate for time period. This concept…

Q: A lottery winner will receive $6 million at the end of each of the next twelve years. What is the…

A: Annual payment (C) = $6,000,000 Interest rate (r) = 0.086 Number of payments (n) = 12 Future value…

Q: Starting next month, I plan to invest $500 per month for 10 years to reach my goal of $100,000.…

A: The rate of interest is used in the calculation of the interest amount on the principal value. The…

Q: oe purchases a£50,30-year annuity. Larry purchases a£50perpetuity. In both cases, payments begin in…

A: Perpetuity is kind of annuity in which the annuity payments are forever and for infinite period and…

Q: What is the future value of this prize if each payment is put in an account earning 0.08?

A: Future value of annuities refers to the sum total value of all payments made on a periodic basis at…

Q: Jose wants to cash in his winning lottery ticket. He can either receive eight, $6,000 annual…

A: Solution:-When an equal amount is received each period at beginning of the period, it is known as…

Q: Amy purchases an annuity that will give her payments of R at the end of each quarter for seven…

A: An Annuity Due is a stream of regular periodic payments made at a beginning of period for a…

Q: A person deposits $2000 every year into an account which has an interest rate of 2.5% annually. If…

A: This problem is based on the concept of the time value of money, which states that a sum of money…

Q: From 2025 to 2029, the TU Clausthal would like to award the best thesis of the year with a sum of…

A: Annuity refers to the payment series of same nominal value which are paid or received at a same…

Q: - Calculate the premium value. F

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: To insure you, Assurances Nochance Ltd offers the following plan: you will pay 20 annual payments of…

A: Present value is the estimation of the current value of future cash value which is likely to be…