Sarah Allen just learned that she received an inheritance from her grandmother. The inheritance provides for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sarah Allen just learned that she received an inheritance from her grandmother. The inheritance provides for Sarah to receive $5700 per year at the end of the year for each of the next 5 years. Assuming a discount rate of 13%, what is the value of this inheritance to Sarah today? Type of Cash Flow Periods Interest Rate Factor PV of $1 5 13% 0.5428 FV of $1 PV ordinary annuity 55 13% 1.8424 13% 3.5172 FV ordinary annuity 5 13% 6.4803 PV annuity due 5 13% 3.9744 Sarah Allen just learned that she received an inheritance from her grandmother. The inheritance provides for Sarah to receive $5700 per year at the end of the year for each of the next 5 years. Assuming a discount rate of 13%, what is the value of this inheritance to Sarah today? Type of Cash Flow Periods Interest Rate Factor PV of $1 5 13% 0.5428 FV of $1 PV ordinary annuity 55 13% 1.8424 13% 3.5172 FV ordinary annuity 5 13% 6.4803 PV annuity due 5 13% 3.9744
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Directions: Use Python to solve each problem, unless the question states otherwise. (Template link) 1. Consider the differential equation 4y" + 25y = 0. (a) For what values of k would the function y...
-
Find the point-slope form of the line pass- ing through the given points. Use the first point as (x 1 , y 1 ). (-3,4), (2,5)
-
If a country is running a balance of trade deficit, will its current account be in deficit? Why?
-
a) Is it easier to punish employees or to prosecute outside attackers? b) Why do companies often not prosecute attackers? c) What is forensics evidence? Contrast what cybercrimes the FBI and local...
-
What's with the Z in Z-test? In what way is it similar to a simple z or standard score?
-
Analyzing the Effects of Errors on Financial Statement Items Cohen & Boyd, Inc., publishers of movie and song trivia books, made the following errors in adjusting the accounts at year-end (December...
-
After retiring from the Cupcake War business, Clive gives $415,000 as a first instalment of inheritance to his 18-year-old grandson, Gary. Task 1 To ensure that Gary does not squander his...
-
Techdirt was started in 1997 by Mike Masnick and grew into a blog that analyzes and offers insight into news stories about changes in government policy, technology, and legal issues that affect...
-
9) Mr. Barnes operates a power plant in the local market. Mr. Barnes' marginal cost function is: MC(q) = 2 + 0.1q. Mr. Barnes can sell all the output he produces for $9 per unit. (This means that the...
-
Glyde Air Fresheners is the price leader in the solid room aromatizer industry, which has a total market demand given by Q= 80 - 2P. Glyde has competition from a fringe of four small firms that...
-
It's now one year later. Your decision to stay open proved to be a good one-you had a loss last year, but it was not as much as you would have lost if you had shut down for the year. Your patience...
-
highlight all of these questions delivered in these bullet points. Be sure to provide lots of detail as well. What is Kroger Delivery? Importance of Kroger Delivery in the grocery industry? Overview...
-
Directions: Read the newsletter Credit Cards. Complete the activities in the newsletter. These activities will not be submitted for grading. http://www.ogburn.org/PFLesson11.pdf Research and describe...
-
What does the concept Multicultural mean? What is the history of Multicultural helping? What are the challenges faced by Human Service Professionals when providing services to diverse populations? As...
-
Data on weekday exercise time for 20 females, consistent with summary quantities given in the paper An Ecological Momentary Assessment of the Physical Activity and Sedentary Behaviour Patterns of...
-
Assume that \(y\) is normally distributed with mean \(\mu\) and variance \(\sigma^{2}\). Let \(\phi(\cdot)\) and \(\Phi(\cdot)\) be the standard normal density and distribution functions,...
-
Use equation (17.2) to establish the following distributional relationships that are helpful for calculating quantiles. a. Assume that \(y_{0}=\alpha_{1} F / \alpha_{2}\), where \(F\) has an...
-
Consider a GB2 probability density function given in equation (17.3). a. Reparameterize the distribution by defining the new parameter \(\theta=e^{\mu}\). Show that the density can be expressed as...
Study smarter with the SolutionInn App