Question: What i s the present value o f a 3 - year annuity o f $ 1 0 0 i f the interest rate i

What is the present value ofa3-year annuity of $100if the interest rate
is6%? What is the present value of this annuity, if you have to wait two
years instead of one year for the first payment?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Russell Engineering provides consulting services related to land development. Below is the year-end adjusted trial balance of Russell Engineering. Accounts Cash Accounts Receivable Supplies Prepaid...

Q:

both questions 24 What happens to the present value and future value of an annuity as the interest rate increases? a. The present value increases and the future value decreases as the interest rate...

Q:

Determine the difference between the present value of a 1000 twenty year annuity earning 8% interest compounded annually verse a 1000 twenty year growing annuity earning 8% interest compounded...

Q:

Calculate the present value of a four-payment $1,000 ordinary annuity if the interest rate is 5%.

Q:

What is the present value of a $2000 per year annuity at a discount rate of 15% for 15 years?

Q:

I need a solution for all the questions . PACKAGE B -CLASS 005 Question 2 (30 marks) IN 1. What is the present value of $10,000 received in year 5 when: a. Interest rate is 5% b. Interest rate is...

Q:

I need a solution for all the questions . PACKAGE B -CLASS 005 Question 2 (30 marks) IN 1. What is the present value of $10,000 received in year 5 when: a. Interest rate is 5% b. Interest rate is...

Q:

What is the present value of $50 received every year forever, assuming an interest rate of 5%?

Q:

Round the answers to the nearest cent Present Value 1. $23,6002. $34,100 3. $13,500 4. $34,500 Nominal Interest Rate 3.25% 2.25%6.50% 1.75% Compounding Frequency Annually Semi-annually QuarterlyMon 2...

Q:

Mind solving should show you got your answers 31. As a mid-size company, you have a pension plan which pays out $10 million a year forever. The first payment is exactly one year from now. The term...

Q:

3.You are given the option of receiving a lump sum of $20,000 now or an annuity of $2000 per year for 10 years. Which of the following is correct? a.You cannot choose between the two without...

Q:

What is human resource planning? How does it relate to other human resource management activities?

Q:

expository essay highlighting the significance of Voluntary Sector Management to the government, and to your life as public administration student.

Q:

A company maintains a perpetual inventory control system. Is it also necessary to take an annual year-end inventory?

Q:

Questions Q1. Write a Python program to retrieve the first and last colors from the following list: color_list = ["red", "green", "white", "blue", "black") Q2. Given the following dictionary,...