You are going to make 20 annual payments of $800, with the first payment made today. At the end of the 40th year you will begin receiving a perpetuity from the account (first payment received at the end of year 40). If the account pays 14% EAR, how much will you receive, each year from the perpetuity (round to nearest $1,000)? $8.00 $800 $800 $800 с A. $122,000 B. $123,000

You are going to make 20 annual payments of $800, with the first payment made today. At the end of the 40th year you will begin receiving a perpetuity from the account (first payment received at the end of year 40). If the account pays 14% EAR, how much will you receive, each year from the perpetuity (round to nearest $1,000)? $8.00 $800 $800 $800 с A. $122,000 B. $123,000

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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If you put up $29,000 today in exchange for a 7.25 percent, 13-year annuity, what will the annual cash flow be? Multiple Choice $3,719.74 $3,323.85 $3,519.21 $2,230.77 $6,414.51
Use Table 12-2 to find how much should be deposited now at 6% interest, compounded monthly, to yield an annuity payment of $100 at the beginning of each month, for 2 years. (Round your answer to the nearest cent.)
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Ques 15 and 16
After 40 years, you will have approximately ….
You make annuity payments of $25,000 per year for the next 11 years. If you earn 6.67% return, how much is this annuity worth at the end of 11 years from today? 793,098 190,587 387,757 O 50,863
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