Question
Problem 6-4 Calculating Annuity Present Value [LO1] An investment offers $5,100 per year, with the first payment occurring one year from now. The required return
Problem 6-4 Calculating Annuity Present Value [LO1]
| An investment offers $5,100 per year, with the first payment occurring one year from now. The required return is 5 percent. |
| a. | What would the value be today if the payments occurred for 10 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. | What would the value be today if the payments occurred for 35 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| c. | What would the value be today if the payments occurred for 65 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| d. | What would the value be today if the payments occurred forever? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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Asset Allocation From Theory To Practice And Beyond
Authors: Mark P. Kritzman, William Kinlaw, David Turkington, Harry M. Markowitz
1st Edition
1119817714, 978-1119817710
