Homework Helper

Not Rated (0)

$17/per page/

About Homework Helper

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Accounting,Applied Sciences See all
Accounting,Applied Sciences,Art & Design,Chemistry,Economics,Essay writing Hide all
Teaching Since: Apr 2017
Last Sign in: 419 Weeks Ago
Questions Answered: 3232
Tutorials Posted: 3232

Education

  • MBA,MCS,M.phil
    Devry University
    Jan-2008 - Jan-2011

  • MBA,MCS,M.Phil
    Devry University
    Feb-2000 - Jan-2004

Experience

  • Regional Manager
    Abercrombie & Fitch.
    Mar-2005 - Nov-2010

  • Regional Manager
    Abercrombie & Fitch.
    Jan-2005 - Jan-2008

Category > Business & Finance Posted 17 May 2017 My Price 7.00

9.4 Find the following values assuming a regular, or ordinary, annuity:

I need formulas and steps to go with answers

 

9.4 Find the following values assuming a regular, or ordinary, annuity:

 

a The present value of $400 per year for ten years at 10 percent

= $400 x 6.145

= $2,458.00

 

b The future value of $400 per year for ten years at 10 percent

= $400 x 15.937

= $6,374.80

 

c The present value of $200 per year for five years at 5 percent

= $200 x 4.329

= $865.80

d The future value of $200 per year for five years at 5

= $200 x 5.526

= $1,105.20

 

9.6 Consider the following uneven cash flow stream:

 

Year Cash Flow PV Factor Present Value

0 $0

1 250 0.909 227.25

2 400 0.826 330.40

3 500 0.751 375.50

4 600 0.683 409.80

5 600 0.621 372.60

Total 1,715.55

=======

a What is the present (Year 0) value if the opportunity cost (discount) rateis 10 percent

$1,715.55

 

9.7 Consider another uneven cash flow stream:

 

9.7

Year Ca Year Cash Flow PV Factor Present Value

0 $2,000 1.000 2,000.00

1 2,000 0.909 1,818.00

2 0 0.826 0.00

3 1,500 0.751 1,126.50

4 2,500 0.683 1,707.50

5 4,000 0.621 2,484.00

Total 9,136.00

=======

a. What is the present (Year 0) value of the cash flow stream if the opportunity cost rate is 10 percent?

$9,136.00

b What is the value of the cash flow stream at the end of Year 5 if the cash flows are invested in an account that pays 10 percent annually

 

Year Cash Flow FV Factor Future Value

0 $2,000 1.611 3,222.00

1 2,000 1.464 2,928.00

2 0 1.331 0.00

3 1,500 1.210 1,815.00

4 2,500 1.100 2,750.00

5 4,000 1.000 4,000.00

Total 14,715.00

=======

 

 

9.9 Assume that you just won $35 million in the Florida lottery, and hence the statewill pay you 20 annual payments of $1.75 million each beginning immediately. If the rate of return on securities of similar risk to the lottery earnings (e.g., the rate on 20-year U.S. Treasury bonds) is 6 percent, what is the present value of your winnings?

 

Present Value of Annuity of Annuity of $1,750,000 for 20 years

 

Immediate Payment $ 1,750,000

Annuity for 19 years at 6% (1,750,000 x 11.158) $19,526,500

Total $21,276,500

Answers

Homework Helper
Not Rated (0)
Status NEW Posted 17 May 2017 08:05 AM My Price 7.00

Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l

Not Rated(0)