If money can earn 4% compounded annually, how much more money is required to fund an ordinary
Question:
If money can earn 4% compounded annually, how much more money is required to fund an ordinary perpetuity paying $1000 at the end of every year, than to fund an ordinary annuity paying $1000 per year for 25 years?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 85% (14 reviews)
The amount required to fund an annuity or a perpetuity is ...View the full answer
Answered By
David Ngaruiya
i am a smart worker who concentrates on the content according to my clients' specifications and requirements.
4.50+
7+ Reviews
19+ Question Solved
Related Book For
Fundamentals Of Business Mathematics In Canada
ISBN: 9781259370151
3rd Edition
Authors: F. Ernest Jerome, Jackie Shemko
Question Posted:
Students also viewed these Mathematics questions
-
If money can earn 6% compounded annually, what percentage more money is required to fund an ordinary perpetuity paying $1000 at the end of every year, than to fund an ordinary annuity paying $1000...
-
If money can earn 6% compounded monthly, how much more money is required to fund an ordinary annuity paying $200 per month for 30 years than to fund the same monthly payment for 20 years?
-
How much more money is required to fund an ordinary perpetuity than a 25-year ordinary annuity if both pay $7000 quarterly and money can earn 7% compounded quarterly? (Do not round intermediate...
-
Convex Mechanical Supplies produces a product with the following costs as of July 1, 2012: Material ............................... $ 6 Labor .................................. 4 Overhead...
-
Refrigerant-134a is the working fluid in a vapor-compression refrigeration system with two evaporators. The system uses only one compressor. Saturated liquid leaves the condenser at 11 bar, one part...
-
The Ethics Resource Center identified five characteristics of a successful ethics program. Suggest a sixth characteristic, and defend your choice.
-
Determine the required cross-sectional area of member BC if the allowable normal stress is allow = 24 ksi. 800 lb 400 lb 6 ft 6 ft B 60 6 ft 30 -45' D 6 ft
-
A firm with a WACC of 10% is considering the following mutually exclusive projects: Which project would you recommend?Explain. 2 3 4 + $225 $225 $49 Project A -$400 $55 $300 $55 $50 $55 Project B -...
-
What are some of the biggest challenges and changes in trends for Human Resources due to the COVID-19 pandemic which has organizations in flux since 2020 especially with employees working remotely?
-
The upper surface of a 50-cm-thick solid plate (k = 237 W/m·K) is being cooled by water with temperature of 20°C. The upper and lower surfaces of the solid plate maintained at constant...
-
What minimum initial amount of money, invested today to earn 6% compounded monthly, will support a monthly payout of $500 for 3 1/2 years if the first payment occurs 2 years and 10 months from now?
-
Chantal will make year-end contributions for 30 years to an RRSP earning 5% compounded annually. a. How much will she have after 30 years if the annual contribution is $2000? b. How much more will...
-
What finance charge will Don pay the bank? Don purchases a new bicycle that sells for $2350 using a bank loan. To finance the loan the bank will require a down payment of 15% and monthly payments of...
-
Let F = (5t +4, sin(41), 5t) Find the indefinite vector integral F F(t) dt = ( +C2, +C1, +C3)
-
How is scope affected if an auditor decides that a smaller amount of misstatement is material for the same detection risk?
-
Calculate and report the value for the Upper Control Limit (UCL) and the Lower Control Limit (LCL) of the Proportion (p) control chart. Please do all calculations and report your final answers...
-
8 0 , 0 0 0 lb / h of a 1 0 % soda solution in water will be concentrated to 5 0 % . Water vapor available at 1 0 0 psia and 3 4 0 F will be used. The third evaporator has a pressure of 2 psia. The...
-
A particle starts from the origin at t=0 with an initial velocity of 5.5 m/s along the positive axis. If the acceleration is (-3.5 +4.2 m/s, determine (a)the velocity and (b)position of the particle...
-
Adventure Park is a large theme park. Staffing for the theme park involves many different labor classifications, one of which is the parking lot staff. The parking lot staff collects parking fees,...
-
Read the case study Richter: Information Technology at Hungarys Largest Pharma and answer the following question: How does the organization ensure the accuracy of the data it stores?
-
What are your overall conclusions concerning the effects of non blink time period on change in TBUT?
-
Use the Bonferroni method to correct for multiple comparisons. Which SNPs show statistically significant effects? Genetics, Diabetes Suppose we have separately analyzed the effects of 10 SNPs...
-
Use the FDR method to correct for multiple comparisons using an FDR = .05. Which SNPs show statistically significant effects? How do the results compare with those in Problem 12.72? Genetics,...
-
The highest WACC is 11%, the baseline WACC is 7.4% and lowest WACCS is 2.8%. To derive a WACC that better accounts for extreme scenarios, you decide to assign the following probability weights: High-...
-
Give 2 examples of the ff: Statutory law Regulatory law Common law Include the title of each example and explain why you chose these examples ( 1 to 2 sentences ) . Note: Write your reference ( s )
-
The Adams family includes a financially well-informed couple, both aged 36, and two children aged 4 and 6. The family is financially sound but suffered badly during the tech meltdown in 2000. The...
Study smarter with the SolutionInn App