23 Jul WHAT IS THE PRESENT VALUE OF YOUR PRICE MONEY?
Hello I just solved this question but Im not sure if I did it correctly. I considered this a perp Show more Hello I just solved this question but Im not sure if I did it correctly. I considered this a perpetuity since it goes forever but other people in my class said they considered this an annuity since you cant live forever. Please let me know if I did this wrong and what I should be doing instead. Question: You won the set for life lottery which promises to pay you $1000 per month forever starting today. At the end of November of each year you collect a bonus payment of $1000 to make it easier to purchase presents for the holidays. To make calculations easier suppose that today is Jan 1st. You discount rate is 10% p.a. What is the present value of your price money? Here is what I did: For the November (yearly) bonus payment: PVo = (1000/0.1) = $10000 For the Monthly Payment: (10% p.a) / (12 months) = 0.83333% = 0.008333 PVo = (1000) / (0.008333) = $120000 Therefore the set for life lottery PV would be the addition of the two previous calculated Present Values. $120000 + $10000 = $130000 Show less
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.