Posts Tagged ‘Value’
I have recently received an IRA from my mothers death. The value is $20,000 and my ?
04
Jun
bank wants me to put this in a MetLife annuity, class L (4 years). I am 64 years old living OK on social security.
I would like thoughts on whether this is a good or bad idea. Thank You
help with net present value / managerial accounting problem (multiple choice)?
01
Jun
Pristine product is considering the purchase of a new machine. The estimated cost of the machine is $25,000. The machine is expected to generate annual cash inflows for the next four years as follows:
Year 1 = $15,000 annual cash flow
Year 2 = $10,000 annual cash flow
Year 3 = $5,000 annual cash flow
The machine is not expected to have a residual value at the end of its useful life. The company uses a discount rate of 10%. Relevant interest factors for 10% single sum and annuity amounts are:
//////// Single Sum //////// Annuity
N=1 __ .9091 ————– .9091
N=2 __ .8264 —————- 1.7355
N=3 __ .7513 ————– 2.4869
What is the expected net present value for the machine?
a.$657
b.$2,273
c.$(4.343)
d.$18,426
need some help with time value analysis. please?
27
May
1).If you depoist money today into an account that pays 6.5 percent interest, how long will it take for you to double your money?
2). John Roberts has $42,180.53 in a brokerage account, and he plans to contrribute an additional $5,000 to the account at the end of every year. The brokerage account has an expercted annual return of 12 percent. If John’s goal is to accumulate $250,000 in the account, how many years will it take for John to reach his goal?
3). What is the future value of a 5-year ordinary annuity that promises to pay you $300 each year? The rate of interest is 7 percent.
4). What is the future value of a 5 year annuity due that promises to pay you $300 each year? Asume that all payments are reinvested at 7 percent a year, until Year 5.
Ahhh! MATH…What is the value of the annuity??? SHORT…10 points for the first correct answer (THANKS)?
26
May
Ok, I’ve tried so many times but can’t seem to get the right answer:
Monthly: $32 deposits
APR: 8%
What is the value of the annuity at the end of 45 years?
Only a formula (correct one!) would be sufficient!
THANKS
final value of an annuity?
23
May
Problem …final value of an annuity?
You get 8 monthly payments of $650 starring one month from now, at 10% interest rate compounded monthly.
using : A=R((1+i)^n-1 / i
present value/future value. please help.?
20
May
a student is paid a monthly allowance of $500 for the duration of his studies (1 yr = 12 months). the interest rate is 15% p.a. and the payments are made at the end of each month
a) how much money would need to be deposited on the day of departure to cover the allownce?
b) what is the total value of allowance on the day the final payment is affected?
a) PV of annuity = $22,477.50
b) FV of annuity = $40,834.83
I just don’t see how you can come up with those two values? Could someone please help me with this?
a)
PV = a/r * [1 - 1/(1 + r)^n]
PV = 500/.125 * [1 - 1/(1.0.125)^12]
b)
FV = a/r * [(1 + r)^n - 1]
FV = 500/.0125 * [(1.0125)12 - 1]
what am I doing wrong here?
present value/future value. please help.?
20
May
a student is paid a monthly allowance of $500 for the duration of his studies (1 yr = 12 months). the interest rate is 15% p.a. and the payments are made at the end of each month
a) how much money would need to be deposited on the day of departure to cover the allownce?
b) what is the total value of allowance on the day the final payment is affected?
a) PV of annuity = $22,477.50
b) FV of annuity = $40,834.83
I just don’t see how you can come up with those two values? Could someone please help me with this?
a)
PV = a/r * [1 - 1/(1 + r)^n]
PV = 500/.125 * [1 - 1/(1.0.125)^12]
b)
FV = a/r * [(1 + r)^n - 1]
FV = 500/.0125 * [(1.0125)12 - 1]
what am I doing wrong here?
Math Help!!! Calculate the future value of the following:?
19
May
$5,000 compounded annually at 6% for 5 years
o $5,000 compounded semiannually at 6% for 5 years
o $5,000 compounded quarterly at 6% for 5 years
o $5,000 compounded annually at 6% for 6 years
Answer the following: What conclusions can be drawn about the frequency of compounding interest? What conclusions can be drawn about the length of time an amount is compounding?
Calculate the present value of the following:
o $7,000 in 5 years at an annual discount rate of 6%
o $7,000 in 5 years at a semiannual discount rate of 6%
o $7,000 in 5 years at a quarterly discount rate of 6%
o $7,000 in 6 years at an annual discount rate of 6%
Answer the following: What conclusions can be drawn about the frequency of the discounting interval? What conclusions can be drawn about the length of time until the receipt of that value?
Answer the following: Assume you have a choice between two annuity contracts. Contract A pays $5,000 per year for 5 years starting one year from today. Contract B pays $5,000 per year for 5 years starting today. The discount rate for each is 6%. Which annuity contract would you choose for your retirement? Why?
I am really not good at this please help.
Appreciate ur time and help!
What is the value of an ordinary annuity that has 600 payments made quarterly for 9 years at 12% interest?
19
May
compounded quarterly?
How do you calculate the future value of growing annuities?
18
May
any help would be GREATLY appreciated!!
Find the monthly payment that will yeild the future value of $95,000?
13
May
using an ordinary annuity at 9% interest for 28 years. (round your answer to the nearest cent)
PRESENT & FUTURE VALUE PROBLEMS?
12
May
I can’t get the right answers to the following problems, please help.
1. mr paul plans to establish an annuity agreement whereby the four children would each receive $3,700 on December 31 of the yrs 2004 to 2018, inclusive. variations in the interest rate during that period are:
12/31/03-12/31/08=12%
12/31/08-12/31/14=11%
12/31/14-12/31/18=9%
COMPUTE the amount mr paul must invest on 12/31/03 to assure the annual payment to his children? THE ANSWER IS $103,425
FUTURE VALUE
Brookes invest $10,00 at the beginning of the next 2 yrs, 10%. how much will brooks have in 2 yrs, if interest is compunded semi annualy? THE ANSWER IS $23,180
Find the monthly payment that will yeild the future value?
11
May
of $100,000 using an ordinary annuity at 9.25% interest for 31 years (Round to the nearest cent)