Question: What is the present value of a 10 year annuity of
What is the present value of a 10-year annuity of $3,000 per period in which payments come at the beginning of each period? The interest rate is 12 percent.
Relevant QuestionsYour grandfather has offered you a choice of one of the three following alternatives: $7,500 now; $2,200 a year for nine years; or $31,000 at the end of nine years. Assuming you could earn 10 percent annually, which ...C. D. Rom has just given an insurance company $35,000. In return, he will receive an annuity of $3,700 for 20 years.At what rate of return must the insurance company invest this $35,000 in order to make the annual payments? ...If you borrow $9,441 and are required to pay back the loan in five equal annual installments of $2,750, what is the interest rate associated with the loan?What does the term mutually exclusive investments mean?Assume a $250,000 investment and the following cash flows for two products:Which alternatives would you select under the paybackmethod?
Post your question