What is the present value of a three-year ordinary annuity of $3,650 per year. Also an additional

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

Question:

What is the present value of a three-year ordinary annuity of $3,650 per year. Also an additional $4,180 lump sum at the end of year three.

If the interest rate is compounded annually at 10.00%?

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-0324597707

12th edition

Authors: Eugene F. Brigham, Joel F. Houston

See More Books

Posted Date: Jun 14, 2023 04:09 AM

See More Questions

a. Draw time lines for (1) a $100 lump sum cash flow at the end of Year 2, (2) an ordinary annuity of $100 per year for 3 years, and (3) an uneven cash flow stream of -$50, $100, $75, and $50 at the...
You have applied for a job with a local bank. As part of its evaluation process, you must take an examination on time value of money analysis covering the following questions: a. Draw time lines for...
Your task this week is to teach Grammy and the board the time value of money and its related concepts. She would like you to address several specific questions to demonstrate the use of time value of...
Which properties of the Clean annotation must be true for the following to compile? (Choose three.) A. The annotation must contain exactly one element. B. The annotation must contain an element named...
How far apart are the dark fringes in Example 24-8 if the glass plates are each 26.5cm long?
A steel washer is suspended inside an empty shipping crate from a light string attached to the top of the crate. The crate slides down a long ramp that is inclined at an angle of 37 above the...
To prepare the statement of cash flows, accountants for Toil-Free Calling, Inc., have summarized 2008 activity in the Cash account as follows: Requirement Prepare the statement of cash flows of...
During 2015, LeBron Corporation accepts the following notes receivable. a. On April 1, LeBron provides services to a customer on account. The customer signs a four-month, 9% note for $7,000. b. On...
You are the senior auditor in charge for the annual audit of Samal Corp. for the year ended December 31, 2020. You checked mostly the information in the financial records for this small/medium entity...
Mr. M has been employed as an engineer by A Ltd., a company incorporated in Hong Kong. During the year ended 31 March 2019, Mr. M had the following income and expenditure. A monthly salary of...
sketch the region enclosed by the curves and com- pute its area as an integral along the x- or y-axis. y=4-x, y=x-4 y=x-6, y = 6-x, y-axis x+y=4 x - y = 0, y + 3x = 4 y=8-3x, y = 6-x, y = 2 y=8-x, y...
if sarah invests $ 3 1 2 , 4 3 4 at a 1 5 % annual return. In how many years can she retire with 1 . 5 million dollars?
Suppose a Mario Real Estate Management Company is considering purchasing an office building which is going to be used for rental income. The cost of the building is 2 million USD paid in cash...
How do a high percentage of Medicaid patients influence a hospital s prices? Discuss in details.
Which of the following Fischer projections corresponds to the compound shown below? H OH H3C H Br CH3 CH3 CH3 CH3 CH3 H- - H- -OH HO- H HO- H H- -Br Br- -H H- -Br Br- -H CH3 CH3 CH3 CH3 A) B) D)
1. Read the following scenario and answer the question in 5-10 sentences. You work as a property manager and staff liaison for a neighborhood association for a downtown neighborhood that recently has...
Prepare the necessary entry to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Cullumber Limited organized late in 2022 and set up a single...
Where are the olfactory sensory neurons, and why is that site poorly suited for their job?
a. What are the four most fundamental factors that affect the cost of money, or the general level of interest rates, in the economy? b. What is the real risk-free rate of interest (r*) and the...
Would a failure to recognize growth options tend to cause a firms actual capital budget to be above or below the optimal level? Would your answer be the same for abandonment, timing, and flexibility...
Southeastern Steel Company (SSC) was formed 5 years ago to exploit a new continuous casting process. SSCs founders, Donald Brown and Margo Valencia, had been employed in the research department of a...
What are the three different types of qualified audit opinion? Discuss the circumstances that may cause these qualifications.
What is the effect of a fundamental uncertainty on the auditors report?
Discuss the work that an auditor performing an initial engagement needs to perform on opening balances.

What is the present value of a three-year ordinary annuity of $3,650 per year. Also an additional

Question:

Expert Answer:

The present value is given by PMT 1 11 PV Where PMT annuity per year PMT 3650 r ... View the full answer

Fundamentals of Financial Management

Students also viewed these finance questions