Business, 07.03.2020 03:23 fatherbamboo

Present Value of an AnnuityConsider the following scenarios for an annuity with a $1000 payment amount C: 27.If you invest the $1,000 at the end of each year for five years and receive a return of 7%,how much is the annuity worth in today's dollars? 28.Now consider what happens if we increase the number of years of the annuity, from 5 to 6 years:Before calculating, predict whether the present value of the annuity will rise or fall by more or less than $1000? Describe in a few sentences why this is the case. Calculate how much is the annuity worth in today’s dollars to confirm your prediction.29.Now (going back to the original case in a) consider what happens if we increase the rate of return, from 7% to 8%:Before calculating, predict if the present value of the annuity will rise or fall from your answer in a? Describe in a few sentences why this is the case. Calculate how much is the annuity worth in today’s dollars to confirm your prediction

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 16:10

Weber company purchases $44,270 of raw materials on account, and it incurs $52,730 of factory labor costs. supporting records show that (a) the assembly department used $27,580 of raw materials and $33,320 of the factory labor, and (b) the finishing department used the remainder. manufacturing overhead is assigned to departments on the basis of 150% of labor costs.journalize the assignment of overhead to the assembly and finishing departments.account titles and explanation debit credit

Answers: 2

Answer

Business, 22.06.2019 08:30

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Answers: 3

Answer

Business, 22.06.2019 10:20

Asmartphone manufacturing company uses social media to achieve different business objectives. match each social media activity of the company to the objective it the company achieve.

Answers: 1

Answer

Business, 22.06.2019 13:10

Trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $4,538. the fica tax for social security is 6.2% of the first $118,500 earned each calendar year, and the fica tax rate for medicare is 1.45% of all earnings for both the employee and the employer. the amount of federal income tax withheld from his earnings was $680.70. his net pay for the month is .

Answers: 1

Answer

You know the right answer?

Present Value of an AnnuityConsider the following scenarios for an annuity with a $1000 payment amou...

Questions