Question: You are offered an annuity that will pay 10 000 a
You are offered an annuity that will pay $10,000 a year for 10 years (that is, 10 payments) starting after five years have elapsed. If you seek an annual return of 8 percent, what is the maximum amount you should pay for this annuity?
Relevant QuestionsYou want your salary to double in six years. At what annual rate of growth must your salary increase to achieve your goal? You wish to retire in 12 years and currently have $50,000 in a savings account yielding 5 percent annually and $100,000 in quality "blue chip" stocks yielding 10 percent. If you expect to add $30,000 at the end of each year ...You buy a stock for $1,000 and expect to sell it for $900 after four years but also expect to collect dividends of $120 a year. Prove that the return on this investment is less than 10 percent. Two stocks, A and B, have beta coefficients of 0.8 and 1.4, respectively. If the expected return on the market is 10 percent and the risk-free rate is 5 percent, what is the risk premium associated with each stock? Given the following information, compute the current and quick ratios: Cash............ $100,000 Accounts receivable..... 357,000 Inventory............ 458,000 Current liabilities....... 498,000 Long-term ...
Post your question