You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 35 years and the payments will increase by 2.1 percent per year. If the appropriate discount rate is 6.1 percent, what is the present value of your winnings? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value

You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 35 years and the payments will increase by 2.1 percent per year. If the appropriate discount rate is 6.1 percent, what is the present value of your winnings? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Problem 1-15 Calculating the Future Value of an Annuity [LO 4) What amount would you have at age 65 if you contributed $260 a month starting today at age 25 and you can earn 6 percent APR compounded monthly on your investment? If you were to delay this savings for 10 years when you're 35, how much would you then have at 65? (Do not round intermediate calculations. Round your final answer to 2 decimal places. Omit the "$" sign in your response.) Annual paynent at the end of 65 years, startine at 25 years Annual payment at the end of 65 years, starting at 35 years
Problem 6-7 Calculating Annuity Values [LO1] You plan to deposit $5,200 at the end of each of the next 25 years into an account paying 10.3 percent interest. a. How much money will you have in the account in 25 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. How much will you have if you make deposits for 50 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) X Answer is not complete. a. Future value of 25 deposits b. Future value of 50 deposits $ 41,956.81 x
FIN2230 Chapter 9 Assignment i 4 If you invest $14,500 per period for the following number of periods is received at the beginning of each year. (Annuity in advance) (Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.) a. 9 years at 4 percent Future value $ b. 16 years at 12 percent Future value $ c. 20 periods at 15 percent Saved Future value
Question 5 What is the present value of a $360 payment in one year when the discount rate is 9 percent? (Round your answer to 2 decimal places.) Future value
Chapter 10 Discussion Q2 A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is the present value (PV) at time 0, given that the interest rate is 11%? Show your steps. A) $2695 B) $4312 C) $5390 D) $3234
QUESTION 7 What is the present value (PV) today of a stable perpetuity that pays $11,000 every 3 years, starting 7 years from today? The appropriate annual discount rate is 12% p.a. Round your answer to the nearest dollar. Do not include the S symbol nor the separating comma, if any. Thus, for example, if the PV is $24,323.55 write 24324 in the answer box. IMPORTANT: Use at least 4 decimals in all your intermediate calculations. In the case of a discount rate, the 4-decimal requirement applies to the percentage version; that is, the decimal version would have 6 decimals. For example, 1.2345% would become 0.012345. Write your answer rounded to the dollar; e.g., 6543 (Acceptable error = 200)
QUESTION 5 What is the present value of an annuity (to nearest dollar) that will give you 25 payments of $1,000 and the first payment is in one year from today? Assume an interest rate of 10 percent. O 9169 O 8981 O 8421 O 9077 O 8514
Question 14 Suppose for an annuity due, you want to have $30,000 in the bank after 20 years. Assuming you make deposits at the beginning of each year at an interest rate of 4%, how much would you have to deposit at the start of each year, assuming that each deposit is the same amount? A) s968.70 B $816.22 $625.00 $737.24
QUESTION 11 Assume that you contribute $160 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $360 per month for the next 25 years. Given a 7.2 percent interest rate, what is the value of your retirement plan after the 50 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Future value of multiple annuities?
question 10 Assume that you contribute $230 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $460 per month for another 30 years. Given a 7.2 percent interest rate, what is the value of your retirement plan after the 50 years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) FUTURE VALUE OF MULTIPLE ANNUITIES?
Incorrect Question 13 Suppose you invest $2,500 in a fund earning 15% simple interest. Further suppose that you have the option at any time of closing this account and opening an account earning compound interest at an annual effective interest rate of 9%. At what instant should you do so in order to maximize your accumulation at the end of five years? (Round your answer to two decimal places.) 4.53 years How about if you wish to maximize the accumulation at the end of ten years? (Round your answer to two decimal places.) 4.53 years
8 [Question text] You are considering to invest in a savings plan. The plan offers a rate of return of 8 percent per year. The plan requires you to save RM1,500, RM1,250, and RM6,400 at the end of each year for the next three years, respectively, how much do you need to save today? Select one: A. RM7,541 B. RM7,203 C. RM8,449 D. RM11,623

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