Present Value of Annuities and Perpetual Annuities
Not what you're looking for?
I just bought a 10 year ordinary annuity that promises to pay 1,500 at the end of each next 10 years. If the appropriate interest rate for this annuity is 7.8% what is the present value of this annuity?
If I want to extend my annuity another ten years, if I pay more money today, I can continue to receive $1,500 per year for another 10 years. How much more should I be willing to pay to extend my annuity?
How much will my annuity be worth if it paid 1,500 at the end of each year forever?
Purchase this Solution
Solution Summary
This solution illustrates how to determine the present values of annuities using Excel and how to determine the present value of a perpetual annuity.
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations