What is the present value of a stream of payments of f per year for t years

Question:

What is the present value of a stream of payments of f per year for t years that starts T years from now if the interest rate is i?

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

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0134519531

8th edition

Authors: Jeffrey M. Perloff

See More Books

Question Posted: Nov 12, 2018 07:41 AM

See More Questions

What is the present value of a firm with a five-year life span that earns the following stream of expected profit? (Treat all profits as being received at year-end.) Use a risk-adjusted discount rate...
What is the present value of a perpetual stream of annual cash flows of $100, with the first cash flow to be received in one year, assuming a discount rate of 8 percent?
What is the present value of a perpetual stream of annual cash flows, with the first cash flow of $100 to be received in one year and with all subsequent cash flows growing at a rate of 3 percent,...
JOB SHEETS: Job cost sheets for each of the ten jobs appear on this sheet. Additionally, a combo box for each job (ten combo boxes total) appears for each job. Further, on this sheet, a check box...
The recoil of a shotgun can be significant. Suppose a 3.3-kg shotgun is held tightly by an arm and shoulder with a combined mass of 15.0 kg. When the gun fires a projectile with a mass of 0.038 kg...
Water flows at a rate of 22.8 m3/sec in a trapezoidal, riprap-lined channel (n = 0.04) with a bottom width of 3 m, side slopes of 2: 1 (H: V), and a bottom slope of 0.005. At a certain location. the...
Suppose you make 15 equal annual deposits of $$1,000$ each into a bank account paying 5% interest per year. The first deposit will be made one year from today. How much money can be withdrawn from...
Using the following information for Gold Star National Bank, calculate that banks ratios of Tier 1 capital-to-risk-weighted assets and total-capital-to-risk-weighted assets. Does the bank have...
JetBlue was able to drive up perceived customer value while lowering costs. This allowed it to carve out a strong strategic position and move to a non-contested market space. Then things went awry....
Classify the following as cross-section or time-series data. a. Food bill of a family for each month of 2015 b. Number of accidents each year in Dallas from 2000 to 2015 c. Number of supermarkets in...
As a resident of New York City, you are considering purchasing a new Toyota Prius. The Prius sells for $20,000. Your annual expense of owning and driving the car is $3,000 (most of which is the cost...
What is the present value of $100 paid a year from now and another $100 paid two years from now if the interest rate is i?
Gene duplication and divergence is thought to have played a critical role in the evolution of increased biological complexity. Is the statement true? Explain why or why not.
6. Three identical small Styrofoam balls (m 1.83g) are suspended from a fixed point by three nonconducting threads, each with a length of 50.8cm and with negligible mass. At equilibrium the three...
THe air is made up of many gases and aerosols, including water vapour. ( a ) Determine the molar mass of a waver vapour molecule. select units ( b ) Determine the RMS speed of water vapour molecules...
For many years, Carthage Inc. has manufactured a small electrical part that is used in the manufacture of its standard diesel tractor model. At a business volume of 60,000 units per year, the unit...
The position of an object moving in simple harmonic motion along the x-axis is described by the equation x= 75 cos(12 nt - n /4) cm What is the first time the object is at zero cm?(enter your answer...
A 1000 kg car is driving around a banked, circular track (if you are unsure of what a banked turn is, watch this video). The track is banked at 30 from the ground and has a radius of 1000 m. 1. If...
List five advantages and five disadvantages of making an S election. Briefly explain each item.
Outline some of the major problems confronting an international advertiser.
Phil's quasilinear utility function is U(q1, q2) = ln q1 + q2. Show that his MRS is the same on all of his indifference curves at a given q1?
What is the effect of a 50% income tax on Dale's budget line and opportunity set?
What happens to a consumer's optimal choice of goods if all prices and the consumer's income double? (What happens to the intercepts of the budget constraint?)
Read"Why Race Isn't as"Black"and White"as We Think"by Brent Staples. What can you find out about your own racial,religious,and cultural heritage? Search the Gateway library database: Ancestry Library...
Describe the classic steps for identifying an endocrine gland. Are these steps practical for identifying the sources of all the hormones we know of today? Explain.
Assuming Jeff has a mild chronic disease, and he has a private hospital health insurance. His salary before tax is $170,000. And assuming he has sold $30,000 of mutual fund units after he bought them...

What is the present value of a stream of payments of f per year for t years

Question:

Step by Step Answer:

The present ...View the full answer

Microeconomics

Students also viewed these Business questions