Annuity amount
Not what you're looking for?
Morgan Jennings, a geography professor, invests $50,000 in a parcel of land that is expected to increase in value by 12% per year for the next five years. He will take the proceeds and provide himself with a 10 year annuity. Assuming a 12% interest rate, how much will this annuity be?
Purchase this Solution
Solution Summary
The solution explains how to calculate the annuity amount.
Solution Preview
We first find the future value of the land price.
FV in 5 years = PV (1+rate)^n = 50,000 (1+12%)^5 = 88,117.08
This is the ...
Purchase this Solution
Free BrainMass Quizzes
Motivation
This tests some key elements of major motivation theories.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.