Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 19, 2024

What is the present value of an ordinary annuity paying $1,250 each year for 20 years, with an interest rate of 7.5 percent compounded annually?

What is the present value of an ordinary annuity paying $1,250 each year for 20 years, with an interest rate of 7.5 percent compounded annually? (Round to the nearest dollar.)

$11,480

$15,172

$17,876

$12,743

Step 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

Recommended Textbook for

Pricing And Hedging Financial Derivatives A Guide For Practitioners

Authors: Leonardo Marroni, Irene Perdomo

1st Edition

1119953715, 978-1119953715

More Books

Students also viewed these Finance questions

Question

★★★★★

Consider a problem of simple linear regression in which the durability Y of a certain type of alloy is to be related to the temperature X at which it was produced. Suppose that the eight pairs of...

Answered: 1 week ago

Question

★★★★★

The following comparative information is available for Larkspur, Inc. for 2022. Determine net income under each approach. Assume a 30% tax rate. Determine net cash provided by operating activities...

Answered: 1 week ago

Question

★★★★★

Does a complex organization like Englands NHS have subcultures? What are the management implications if core subcultures exist?

Answered: 1 week ago

Question

★★★★★

Rox Corporations multiple-step income statement and retained earnings statement for the year ended December 31, 2016, as developed by its bookkeeper, are shown here: Retained Earnings Statement...

Answered: 1 week ago

Question

★★★★★

What is the present value of an ordinary annuity paying $1,250 each year for 20 years, with an interest rate of 7.5 percent compounded annually? (Round to the nearest dollar.) A. $11,480 B. $15,172...

Answered: 1 week ago

Question

★★★★★

Case Study: Stephenson Real Estate Recapitalization Stephenson Real Estate Company was founded 25 years ago by the current CEO, Robertson Stephenson. The company purchases real estate, including land...

Answered: 1 week ago

Question

★★★★★

Harold's Haberdashery sells custom-made suits. Each suit is made after the customer has placed the order and has been measuredDuring the first quarter, Harold's estimates it will produce 352 suitsIt...

Answered: 1 week ago

Question

★★★★★

Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $0.45 at the end of the year. Its dividend is expected to grow at a constant rate of 9.00% per year. If...

Answered: 1 week ago

Question

★★★★★

Which of the following statements about quantitative easing (QE) and open-market purchases is true? Multiple Choice QE is similar to open-market purchases in that both are aimed at reducing...

Answered: 1 week ago

Question

★★★★★

The articles of Valley Farms Inc. inadvertently indicated that its agent for service of process was Samantha Roberts rather than Samantha Robertson. Luisa owes the corporation $30,000 and is...

Answered: 1 week ago

Question

★★★★★

1) Have you ever applied the doctrine of mean in your moral evaluation? Share the moment in your life when you applied this moral principle but if you disagree with the notion of this principle,...

Answered: 1 week ago

Question

★★★★★

evaluate and draft recruitment and selection policies and procedures

Answered: 1 week ago

Question

★★★★★

understand the role of human resource managers and line managers in the recruitment and selection process

Answered: 1 week ago

Question

★★★★★

2. Why are there so few female engineers compared to male engineers and what can the engineering sector do to encourage females to take up a career in engineering?

Answered: 1 week ago

Previous Question Next Question