Annuity [6] Show that the present value of an annuity paying X per period for T years

Question:

Annuity [6]

Show that the present value of an annuity paying X per period for T years when the interest rate is r can be simplified as T

PV=Y: X rj(l + r)* [r = x r{l + r)T

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Lectures On Corporate Finance

ISBN: B00RGENH5I

1st Edition

Authors: Peter L Bossaerts ,Bernt Arne Odegaard

See More Books

Question Posted: Oct 25, 2024 06:00 AM

See More Questions

The inequality describes the range of monthly average temperatures T in degrees Fahrenheit at a certain location. (a) Solve the inequality. (b) If the high and low monthly average temperatures...
How does the formula for determining the price of a T-bill resemble the formula for determining the price of a zerocoupon bond? Why is this so?
A block of mass 0.5 kg rests on the inclined surface of a wedge of mass 2 kg, as in figure. The wedge is acted on by a horizontal force and slides on a frictionless surface. (a) If the coefficient of...
Annuity [6] Show that the present value of an annuity paying X per period for T years when the interest rate is r can be simplified as T PV=Y: X rj(l + r)* [r = x r{l + r)T
Merline, a one-product mail-order firm, buys its product for $ 75 per unit and sells it for $ 150 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income...
We know that Tacitus was aware that not all Germanic peoples are the same because
Growing Perpetuity [8] The present value of a perpetuity that pays Xx the first year and then grows at a rate g each year is: PV = Z t=\ (1 + r)* Show that this simplifies to * r-g
Stock [2] The current price for a stock is 50. The company is paying a dividend of 5 next period. Dividend is expected to grow by 5% annually. The relevant interest rate is 14%. In an efficient...
=+Who do you suppose benefits from the higher productivity? Is society getting a free lunch?
This circular tank of water is being filled from a pipe as shown. The velocity of flow of water from the pipe is 10 ft /s. What will be the rate of rise of the water surface in the tank? Diameter = 1...
A 10-m-high cylinder, with a cross-sectional area of 0.1 m 2 , has a massless piston at the bottom with water at 20C on top of it, as shown in Fig. P3.145. Air at 300 K, with a volume of 0.3 m 3 ,...
What is the percent error in pressure if the ideal gas model is used to represent the behavior of superheated vapor R-410a at 60C, 0.03470m 3 /kg? What if the generalized compressibility chart, Fig....
The Mach number downstream of a shock wave in helium is 0.85, and the static temperature is 110C. Calculate the velocity upstream of the wave.
The cross section of a heat exchanger consists of three circular pipes inside a larger pipe. The internal diameter of the three smaller pipes is D S = 1.5 cm, and their pipe wall thicknesses are each...
A consist of two chambers: an adiabatic combustion chamber where the fuel is burned completely and adiabatically and a counter flow heat exchanger where heat is transferred to a reversible heat...
The Cholesterol Level data sets give cholesterol levels of heart attack patients. Cholesterol measures are taken 2, 4, and 14 days aft er a patient has suffered a heart attack. Is there a significant...

Annuity [6] Show that the present value of an annuity paying X per period for T years

Question:

Step by Step Answer:

Lectures On Corporate Finance

Students also viewed these Business questions