Answered step by step
Verified Expert Solution
Question
1 Approved Answer
PLEASE I NEED THE FINAL ANSWER FOR ALL THE QUESTION. THANKS. #1 If you are willing to pay $43,065.00 today to receive $4,832.00 per year
PLEASE I NEED THE FINAL ANSWER FOR ALL THE QUESTION. THANKS.
#1 If you are willing to pay $43,065.00 today to receive $4,832.00 per year forever then your required rate of return must be %. Assume the first payment is received one year from today. unanswered Submit not submitted Attempts Remaining: Infinity Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) #2 If you are willing to pay $21,174.00 today to receive a perpetuity with the first payment occurring next year then the payment must be $ Assume a 13.00% discount rate. unanswered Submit not_submitted Attempts Remaining: Infinity Answer format: Currency: Round to: 2 decimal places. #3 What discount rate would make you indifferent between receiving $3,079.00 per year forever and $5,645.00 per year for 29.00 years? Assume the first payment of both cash flow streams occurs in one year. unanswered Submit not_submitted Attempts Remaining: Infinity Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924) #4 Today is Derek's 25th birthday. Derek has been advised that he needs to have $2,074,585.00 in his retirement account the day he turns 65. He estimates his retirement account will pay 10.00% interest. Assume he chooses not to deposit anything today. Rather he chooses to make annual deposits into the retirement account starting on his 28.00th birthday and ending on his 65th birthday. How much must those deposits be? unanswered not_submitted Attempts Remaining: Infinity Submit Answer format: Currency: Round to: 2 decimal places. 115 Suppose you deposit $2,542.00 into an account today. In 13.00 years the account is worth $3,696.00. The account earned % per year. unanswered Submit not submittedStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started