An annuity starts with $501,692 and pays out $10,000 per month. If the remaining principle earns 4

Question:

An annuity starts with $501,692 and pays out $10,000 per month. If the remaining principle earns 4 % annual interest compounded continuously, for how many months will the annuity pay?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Finance With Monte Carlo

ISBN: 9781461485100

2013th Edition

Authors: Ronald W. Shonkwiler

See More Books

Question Posted: Oct 03, 2023 06:25 AM

See More Questions

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
Your friend Sue has asked you to help her out as she is developing her financial plan. Help her come up with a plan for her finances and how she can set herself up for financial success! She has an...
1. Suppose a US Treasury bond will pay $2,500 five years from now. If the current interest rate on the 5-year Treasury bond is 4.25%, how much is the bond worth today? 2. Five years ago, Greenery...
One reason you might choose to sync a SharePoint library to your computer is to Select an answer: have a separate copy that your colleagues can't affect have a separate copy in case SharePoint breaks...
Multiple Choice Questions 1. On January 1, 2010, Microspace, Inc., purchased $80,000 face value of the 5% bonds of Mail Frontier, Inc., at 107. The bonds mature on January 1, 2015. For the year ended...
During your audit of the financial statements of Velvet Company you acquired the following detail of cash and cash equivalent as of December 31, 2020: On deposit in current account with the East Bank...
Consider a $2^{2}$ factorial experiment with factors A and B. Show that $I N T(A, B)=I N T(B, A)$. That is, the interaction is symmetric in $\mathrm{B}$ and A.
Data on sales revenue Y, television advertising expenditures X1, and print media advertising expenditures X2 for a large retailer for the period 1988-1993 were given in Problem 11 of Chapter 8. Use...
The following information is for Kon Inc. for the year ended December 31, 2021: Common shares, Jan. 1 $20,000 Common shares issued during year 10,000 Retained earnings, Jan. 1 58,000 Office expense...
Write a program to display a piecewise linear approximation of a price path as follows. Let S 0 , S 1 , S 2 , ..., S 365 be a 1 year sequence of prices. Select a subset of these, for example monthly...
Algorithm 6 assumes that the equity is purchased at the beginning of the dividend period. If the stock is held for an exact multiple of the dividend period, then the annualized return should be...
A tank has two sides initially separated by a diaphragm. Side A contains 1 kg of water and side B contains 1.2 kg of air, both at 20C, 100 kPa. The diaphragm is now broken and the whole tank...
A brand that wants customers to see it as a friend by depicting a model using it is more effective when the product image appears horizontally and near the model. On the other hand, if a brand wants...
Discuss how the only form of control (statistical procedures) will be used in this scenario. Develop a hypothetical research scenario that would necessitate the use of a Longitudinal Design. The...
Discuss the major threats to validity associated with this design and type of research (experimental). How will these threats be addressed, based on the discussion of the control techniques in the...
Mindfulness training often claims to help people change how they eat, how they work out, and how they study. Do you agree?
Develop the appropriate primary research question to be associated with this design. Develop a hypothetical research scenario that would necessitate the use of a 3-Factor Crossover Design. The...
Petra Corporation owns 70% of the common stock of Swain Company. The stock was purchased for $420,000 on January 1, 2007, when Swain Companys retained earnings were $100,000. Preclosing trial...
Sandcastles, Inc.s management has recently been looking at a proposal to purchase a new brick molding machine. With the new machine, the company would not have to buy bricks. The estimated useful...
Estimate the mass of the air in your bedroom. State the quantities you take as data and the value you measure or estimate for each.
On his honeymoon James Joule traveled from England to Switzerland. He attempted to verify his idea of the interconvertibility of mechanical energy and internal energy by measuring the increase in...
A popular brand of cola contains 6.50 g of carbon dioxide dissolved in 1.00 L of soft drink. If the evaporating carbon dioxide is trapped in a cylinder at 1.00 atm and 20.0C, what volume does the gas...
How can IKEA minimize its weaknesses to protect itself from external threats ?
Air is owing steadily over a series of turning vanes. The vanes are spaced 15 cm apart and arranged periodically, so identical control volumes can be drawn around each vane as shown in the gure. (the...
If no current flows through the galvanometer, what can you say about the potentials at the two points in the circuit that it is connected to?

An annuity starts with $501,692 and pays out $10,000 per month. If the remaining principle earns 4

Question:

Step by Step Answer:

To calculate for how many months the annuity will pay you can use the formula for compound interest ...View the full answer

Finance With Monte Carlo

Students also viewed these Business questions