FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 27 Suppose you have an annuity that has annual payments of $20,000. This means, you receive $20,000 each year. The interest rate is 3.5%

image text in transcribed

QUESTION 27 Suppose you have an annuity that has annual payments of $20,000. This means, you receive $20,000 each year. The interest rate is 3.5% and it is for 20 years. If you wanted to sell this for a lump sum, what is it worth? In other words, what is the present value of this annuity? A. $284,248.07 B. $299,065.44 C. $319,090.94 O D. $490,727.15

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Beyond Greed And Fear Understanding Behavioral Finance And The Psychology Of Investing

Beyond Greed And Fear Understanding Behavioral Finance And The Psychology Of Investing

Authors: Hersh Shefrin

1st Edition

0195161211, 978-0195161212

More Books

Students also viewed these Finance questions

Question

★★★★★
How could (accurate) balance sheet and income statement information be used, along with other information, to make a statement of cash flows? What is the primary pur6pose of this statement?

Answered: 1 week ago

Question

★★★★★
Independent random samples taken on two university campuses revealed the following information concerning the average amount of money spent on textbooks during the fall semester. We want to determine...

Answered: 1 week ago

Question

★★★★★
Im contacting you about your recent order for a High Country backpack. You didnt tell us which backpack you wanted, and you know we make a lot of different ones. We have the canvas models with the...

Answered: 1 week ago

Question

★★★★★
On January 10, Kristin Pitt uses her Stampfer Co. credit card to purchase merchandise from Stampfer Co. for $1,700. On February 10, Pitt is billed for the amount due of $1,700. On February 12, Pitt...

Answered: 1 week ago

Question

★★★★★
QUESTION 27 Suppose you have an annuity that has annual payments of $20,000. This means, you receive $20,000 each year. The interest rate is 3.5% and it is for 20 years. If you wanted to sell this...

Answered: 1 week ago

Question

★★★★★
Top of Form Amount Per Unit Direct Materials $6.20 Direct Labour $3.70 Variable Manufacturing overhead $1.60 Fixed Manufacturing overhead $4.20 Fixed selling expense $3.20 Fixed administrative...

Answered: 1 week ago

Question

★★★★★
The adjusted trial balance for Lloyd Construction as of December 31, 2023, follows: No. Account Debit Credit 101 Cash $ 16,100 104 Short-term investments 21,100 126 Supplies 7,700 149 Notes...

Answered: 1 week ago

Question

★★★★★
Jane named Edith as the executrix of her estate . Which of the following responsibilities will Edith not have after Jane's death ? a ) Making funeral arrangements for Jane b ) Preparing an inventory...

Answered: 1 week ago

Question

★★★★★
Create a probability table for this distribution for the data below. Include the Probability Percentages. How To Win NUMBERS MATCHED PRIZE AMOUNT 4 White Balls 3 White Balls 2 White Balls Overall...

Answered: 1 week ago

Question

★★★★★
The owners of Annie's Homemade Ice Cream are deciding between buying land and building a 1 , 8 0 0 1 , 8 0 0 square - feet ice cream shop or signing a five - year lease for 1 , 5 0 0 1 , 5 0 0...

Answered: 1 week ago

Question

★★★★★
4) The following data shows promotion data from the Vancouver police department. Promotion Status Gender male female Total Promoted 288 36 324 Not Promoted Total 672 204 876 960 240 1200 e) Are the...

Answered: 1 week ago

Previous Question Next Question