If someone pays you $1 a year for 20 years, what is the present value of the
Question:
If someone pays you $1 a year for 20 years, what is the present value of the series of future payments discounted at 10 percent annually?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 42% (7 reviews)
At a 10 discount rate th...View the full answer
Answered By
Bhartendu Goyal
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions. I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life. I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge. I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields. Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a tea...
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Real Estate Principles A Value Approach
ISBN: 978-0077836368
5th edition
Authors: David C Ling, Wayne Archer
Question Posted:
Students also viewed these Business questions
-
Anne Boleyn will invest $5,000 a year for 20 years in a fund that will earn 12% annual interest. If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the...
-
Sally Medavoy will invest $8,000 a year for 20 years in a fund that will earn 12% annual interest. If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the...
-
The lucky winner of a lottery was given an option. She could either receive $1 million a year for 20 years, for a total of $20 million, or simply receive $10 million today. Why would anyone take the...
-
just finished the business plan of his start-up company. According to the projections he carried-out, the initial investment is 1,500,000 SAR (assume that we are in the beginning of 2023), which will...
-
Suppose that the number of mosquitoes N (in thousands) in a certain swampy area near a community is related to the number of pounds of insecticide x sprayed on the nesting areas according to Nx - 10x...
-
Find the energy Q liberated in -- and +- decays and in K-capture if the masses of the parent atom Mp, the daughter atom Md, and an electron m are known.
-
Define the legal terms precedent, res judicata, stare decisis, original jurisdiction, and appellate jurisdiction.
-
Uni-Select Inc.s comparative balance sheet information at December 31, 2014 and 2013, and its income statement for the year ended December 31, 2014, are as follows: During 2014, the following...
-
Sweet Treats Beverage Company's operating activities for the year are listed below. Purchases Operating expenses Beginning inventory Ending inventory Sales revenue $140,600 80,800 12,400 18,100...
-
You receive an email from your mentor: Hey, Tough assignment! Welcome to the messy job of...well...cleaning up messes. I've been following our mentions on social media since last night, too, so here...
-
You are at retirement age and one of your benefit options is to accept an annual annuity of $75,000 for 15 years. The first payment would be received one year from today. What lump sum settlement, if...
-
A family trust will convey property to you in 15 years. If the property is expected to be worth $50,000 when you receive it, what is the present value of your interest, discounted at 10 percent...
-
Hickory Furniture Company manufactures unfinished oak furniture. Hickory uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room...
-
Explain very briefly the function of following mountings: (i) Steam stop valve (ii) Feed check valve (iii) Blow-off cock (iv) water level indicator (v) Pressure gauge (vi) Safety valve
-
A pressure cooker contains \(10 \mathrm{~kg}\) of saturated steam at 8 bar. Find the quantity of heat which must be rejected to reduce the quality to \(85 \%\). Determine the pressure and temperature...
-
A \(30,0-\mathrm{mg}\) oil drop carrying a charge of \(+3.5 \mu \mathrm{C}\) passes undeflected through a region in which there is a uniform, constant electric field. What are the magnitude and...
-
Write short notes on major petroleum products such as diesel and kerosene.
-
z = 1.9 for H a : 25.7 Find the P-value that corresponds to the standard z-score, and determine whether the alternative hypothesis is supported at the 0.05 significance level.
-
Use the Venn diagram in Fig. 2.24 to list the sets in roster form. A © B © C 12 10 4 6 \14 6. 11 2 13
-
What are the principal differences among asset liquidity management, liability management, and balanced liquidity management?
-
Explain the relationship and purpose of a promissory note and the two primary forms of security instruments?
-
In a foreclosure, how are priorities determined among lien claimants on the collateral property?
-
What is the underlying purpose of requiring a borrower to escrow money each month for the payment of property taxes?
-
If a tax Bear has a vacation home, that is issues personally by the taxpayer for part of the year, and as a rental for part of the year, how are expenses reported on its tax return?
-
Christopher and Janai have a new grandson. How much money should they invest now so that he will have $78,000 for his college education in 18 years? The money is invested at 3.8% compounded...
-
Jonas' current annual salary is $70,000. Ten years from now how much will he need to earn to retain his present purchasing power if the rate of inflation over that period is 2% /year compounded...
Study smarter with the SolutionInn App