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: You are going to receive $50 at the end of each year for the next 6 years. If you invest each of…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

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: Suppose today is January 1, 2024 and you are given two options: a. an annuity that pays you 1000…

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

Q: Paolo is considering purchasing a Sunlife Capital investment. Paolo will receive P1,000 every three…

A: Maximum amount Paolo is willing to pay is present value of all future cash flows discounted at…

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: Carrie Tune will receive $30,000 for the next 11 years as a payment for a new song she has written.…

A: The present value of Future payments or receipts is different. Which can be computed by multiplying…

Q: A lottery winner will receive $5.5 million every 6 months for the next twenty years. What is the…

A: The objective of this question is to calculate the future value of the lottery winnings, given that…

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: Coronado Industries will invest $100000 every December 31st for the next six years (2020 – 2025). If…

A: The last payment will be on December 31, 2025 and therefore, will not receive any interest on it.

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: Carla Vista Company is considering investing in an annuity contract that will return $34,500…

A: Present Value of Investment = Annual Return x Present Value of Annuity Factor

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: 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: You purchase a 10-year annuity that pays you \$ 30000 / v * ear . The first payment will begin in…

A:

Q: Jami Minard wants to receive an annuity of $8,000 at the beginning of each year for the next 10…

A: Annuity refers to a contract between an individual and an insurance company under which a desired…

Q: Frank just won the lottery! Starting one year from now, he will recieve $66, 000 per year for the…

A: Long-term investment decisions are frequently made by organizations when starting new initiatives,…

Q: You have Just won the lottery and will receive $490,000 in one year. You will receive payments for…

A: To calculate the present value we will use the below formula   Present value =…

Q: As a result of winning the Gates Energy Innovation​ Award, you are awarded a growing perpetuity. The…

A: In the financial system, perpetuity refers to a situation in which a stream of cash flow payments…

Q: Patrick makes payments of $250 per month at the end of each month. At the end of 10 years, he wants…

A: The rate of interest required to have the desired amount can be calculated with the help of rate…

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

A: Using PMT function in excel

Q: etna is offering customers who invest $10,000 with them today a payment of $1,500 every 1.5 years in…

A: Concept, first we will calculate the effective rate for the 1.5 year period which is nothing buy the…

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: 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: You plan to buy a house in October 2022. The sale price is $539,000. You need to pay 10% down…

A: Sale Price = $539,000 Down Payment = 10% of Sale Price Time Period = 15 Years Interest Rate = 3.75%

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: You just received an inheritance of $123,456. How long would you need to leave it in an RRSP earning…

A: Here, Inheritance Amount is $123,456 Monthly Payment for 20 years is $800 Interest Rate is 2.5%…

Q: Carrie Tune will receive $30,800 for the next 10 years as a payment for a new song she has written.…

A: Payment = p = $30,800Time = t = 10 YearsDiscount Rate = r = 16%

Q: You just won the lottery! As your prize, you will receive $2,200 a month for 90 months. If you can…

A: Compound = Monthly = 12Payment = p = $2200Time = t = 90 Interest Rate = t = 7 / 12 %