Project #11002 - finance homework

1. You have won $10,000 today, $20,000 five years from today, and $50,000 ten years from today. As an alternative, you can receive your winnings as a 15 year annuity with the first payment recieved 10 yrs from today. If you require a 6% return on your investment, how much must the annuity pay you each year for you to select that option?

2. you are planning for you future. You want to recieve $10,000 ten years from today and a retirement annuity of $50,000 per year for 15 years with the first payment 15 years from today. To pay for this, you will make 5 payments of $A per year beginning today and 3 annual payments of $2A with the first payment 12 years from today. With an interest rate of 8% what is the value for A?

3.The current price of stock XXX is $30 per share. You plan on buying it today, holding it for 3 years, and then selling it. You anticipate recieving a dividend per share of $1.00 one year from

today, $1.50 two years from today, and $1.50 3 yrs from today.If you want to earn an annual compound rate of 20%, what price must you sell the stock at 3 yrs from today?

 

Subject Mathematics
Due By (Pacific Time) 08/25/2013 12:00 am
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