An investment offers $9,100 per year for 16 years, with the first payment occurr
ID: 2647444 • Letter: A
Question
An investment offers $9,100 per year for 16 years, with the first payment occurring 1 year from now. Assume the required return is 11 percent.
What is the value of the investment today? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
What would the value be if the payments occurred for 41 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
What would the value be if the payments occurred for 76 years? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
What would the value be if the payments occurred forever? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
An investment offers $9,100 per year for 16 years, with the first payment occurring 1 year from now. Assume the required return is 11 percent.
Explanation / Answer
1.
2.
3.
4.
Annual Payment $9,100.00 Term 16 Year Required Rate 11% Sum of PVF for 16 year 7.379 Present Value $67,148.90Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.