What amount of money deposited 50 years ago at 8% interest would provide a perpetual payment of
Question:
What amount of money deposited 50 years ago at 8% interest would provide a perpetual payment of $10,000 a year beginning this year?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (16 reviews)
The amount of money needed now to begin the perpe...View the full answer
Answered By
Ankur Gupta
I have a degree in finance from a well-renowned university and I have been working in the financial industry for over 10 years now. I have a lot of experience in financial management, and I have been teaching financial management courses at the university level for the past 5 years. I am extremely passionate about helping students learn and understand financial management, and I firmly believe that I have the necessary skills and knowledge to effectively tutor students in this subject.
4.80+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
What amount of money paid today is equivalent to $560 paid five months from now if money can earn 10 % per annum?
-
What amount of money will accumulate to $480.57 in 93 days at 4.6%?
-
What amount of money will accumulate to $1516.80 in eight months at 8%?
-
Football Comm LLC is a manufacturer of devices for football coaches and their coaching staffs that enable them to quickly and effectively communicate with one another during a game through a wireless...
-
In the tale of two units, Unit B functioned much more smoothly than Unit A. a. Identify the macro-level coordination mechanisms being used in Unit B that were not used in Unit A. b. What is the...
-
The statement of members equity for Yellow Mountain Mines, LLC, is shown below. (a) What was the income-sharing ratio in 2010? (b) What was the income-sharing ratio in 2011? (c) How much cash did...
-
Comparative Advantage in the Twenty-First Century. With reference to the theory of comparative advantage, explain how MNEs outsource some services to emerging market economies.
-
Lyon Center began operations on July 1. It uses a perpetual inventory system. During July, the company had the following purchases and sales. Instructions (a) Determine the ending inventory under a...
-
Mindspin Labs Inc. is a manufacturing firm that has experienced strong competition in its traditional business. Management is considering joining the trend to the "service economy" by eliminating its...
-
A simple parity-check bit, which is normally added at the end of the word (changing a 7-bit ASCII character to a byte), cannot detect even numbers of errors. For example, two, four, six, or eight...
-
An elderly lady decided to distribute most of her considerable wealth to charity and to retain for herself only enough money to provide for her living. She feels that $1000 a month will amply provide...
-
A depositor puts $25,000 in a savings account that pays 5% interest, compounded semiannually. Equal annual withdrawals are to be made from the account, beginning one year from now and continuing...
-
(a) Determine whether the graphs in Fig. 11.93 are isomorphic. (b) Find P(G, X) for each graph. (c) Comment on the results found in parts (a) and (b). Figure 11.93
-
1. Red Horse, Inc. a small beer brewery. The beer is processed in a single brewery into light beer, dark beer, and an impure byproduct. There were no beginning inventories or work-in-process in...
-
How can I explain the importance of policy in the areas of (organization, workforce training, and employee performance and appraisals) How is this critical to the success of an organization? What...
-
Company X acquired the following assets: a- Truck for $40,000 with 10 years of useful life and $4,000 of residual value, giving a sudden payment of 10%. b- Computer for $2,000 with 6 years of useful...
-
The importance of an effective incident response and disaster recovery plan is emphasized. Why do you think many organizations still neglect to develop and implement these plans until after a...
-
Analyze the importance of the creative process in establishing business practices. Explain ways in which creativity can manifest through business practices. Analyze the impact of a growth mindset on...
-
Organization costs are recorded as an intangible asset and are generally amortized over a period of five years. True/False
-
Assume today is the 21st of February. Using the information below, FT Extract, answer the following questions (parts i and ii). You work for a US company that is due to receive 250 million in June...
-
The advent of readily available spreadsheets on personal computers should have seen a huge upsurge in management science and quantitative management. Have we become so used to using software to...
-
A cooling-water pumping station at the LCRA plant costs $600,000 to construct, and it is projected to have a 25-year life with an estimated salvage value of 15% of the construction cost. However, the...
-
A video recording system was purchased 3 years ago at a cost of $30,000. A 5-year recovery period and DDB depreciation have been used to write off the basis. The system is to be replaced this year...
-
An engineer with Accenture Middle East BV in Dubai was asked by her client to help him understand the difference between 150% DB and DDB depreciation. Answer these questions if B = $180,000, n = 12...
-
CPEG is a large corporation which operates as a public utility company. Its shares trade on the New York Stock Exchange. It supplies natural gas and electricity to residents in a number of states,...
-
En esta actividad reforzars la competencia Sello EBC: Impulsores de progreso-enfoque en resultados, tu competencia tcnica: Uso de informacin de anlisis tcnico y fundamental, y tus competencias...
-
Alphabet Inc.'s primary short-term goal is to boost revenue from diversified sources such as alternative revenue streams and advertising. By increasing revenue and diversified sources in revenue...
Study smarter with the SolutionInn App