No Excel solution required Derive a formula that calculates the present value of an annuity that pays
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No Excel solution required Derive a formula that calculates the present value of an annuity that pays $1376 pa quarterly in perpetuity given an annual effective rate of interest of 3.7%. What is the value of the real difference between this annuity being paid in advance versus in arrears? (10 marks)
(b) A company expects to receive a continuous cash flow over the next 2 years from Internet sales at a rate of $(762.3 + 1.8t) per week where t is measured in weeks. Assuming that the risk-free rate is going to remain at 0% for this period, and that the current balance is $10,052, what will be the balance at the end of the 2 years if no withdrawals are made?
Related Book For
Financial and Managerial Accounting Using Excel for Success
ISBN: 978-1111993979
1st edition
Authors: James Reeve, Carl S. Warren, Jonathan Duchac
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