What would be the present value of a yearly annuity of $105 per year for 10 years

Question:

What would be the present value of a yearly annuity of $105 per year for 10 years if the appropriate rate of interest is 7.5 percent per year and the first payment arrives today?

a. $636.83

b. $705.05

c. $774.79

d. $833.67

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

Step by Step Answer:

Related Book For book-img-for-question

Corporate Finance Demystified By T Adair

ISBN: B003R9TYRG

1st Edition

Authors: T Adair

See More Books

Question Posted: May 31, 2024 10:02 AM

See More Questions

What would be the present value of a yearly annuity of $105 per year for 10 years if the appropriate rate of interest is 7.5 percent per year and the first payment starts one year from today? a....
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
Your mother just received a $250,000 inheritance. If she invests her money in a diversified equity portfolio returning 8 percent per year, approximately how long will it take her to become a...
Charles has a savings account with a balance, today, of 100,000 SAR in his investment account. He expects to obtain a yearly return of 12% in his investments. How long will it take for Charles to...
Suppose that three of the patients were prescribed one medication and the other two were prescribed a different one. What is the probability that all five get the right medication? Each of five...
What is gene conversion?
Which international marketing strategies have been crucial for Ubers global success? LO.1
Assume the same facts as for Question 1 above. The fair value of the investment in Company E is $220,000 on December 31, 2011. Answer the following questions assuming the investment is recorded using...
Consider the nonlinear potato chip production problem discussed in Lectures 6-7 in Week 8,where demand,revenue and profit are given to also depend on price. In class,we had seen that the optimal...
Which of the following pairs of interest rate quotations would represent a pair of different quotes that we could switch back and forth between using only division and multiplication (i.e., without...
Continuing the previous problem, how much must each deposit be if you can only earn 0.5 percent per month in your retirement account? a. $134.82 b. $227.82 c. $343.82 d. $427.82
In Exercises determine whether the Mean Value Theorem can be applied to on the closed interval [a, b]. If the Mean Value Theorem can be applied, find all values of c in the open interval (a, b) such...
Saskatchewan Soy Products (SSP) buys soy beans and processes them into other soy products. Each tonne of soy beans that SSP purchases for $300 can be converted for an additional $200 into 500 lbs of...
Pharoah Acres sponsors a defined-benefit pension plan. The corporation's actuary provides the following information about the plan: January 1, 2025 December 31, 2025 Vested benefit obligation $510...
Company panther is compelled to pick between two machines An and B. The two machines are planned in an unexpected way, yet have indistinguishable limit and do the very same work. Machine A costs...
On April 30, 2023, a company issued $600,000 worth of 5% bonds at par. The term of the bonds is 9 years, with interest payable semi- annually on October 31 and April 30. The year-end of the company...
Identify the following; MethodBodyReturn statementReturn typeParameter Look at this example we saw in our Methods lesson: public double findTheArea (double length, double w idth) { double area =...
Suppose you examine the central banks balance sheet and observe that since the previous day, reserves had fallen by $100 million. In addition, on the asset side of the central banks balance sheet,...
Explain the regulation of the secretions of the small intestine.
Arnold inc. is considering a proposal to manufacture high end protein bars used as food supplements by body builders. The project requires an upfront investment into equipment of $1.4 million. This...
Billy Bob bank has three assets. It has $83 million invested in consumer loans with a 3-year duration, $46 million invested in T-Bonds with a 12-year duration, and $69 million in 6-month (0.5 years)...
Ventaz Corp manufactures small windows for back yard sheds. Historically, its demand has ranged from 30 to 50 windows per day with an average of 4646. Alex is one of the production workers and he...

What would be the present value of a yearly annuity of $105 per year for 10 years

Question:

Step by Step Answer:

Corporate Finance Demystified By T Adair

Students also viewed these Business questions