You have been offered a choice of: Offer One $6,000 now Offer Two $1,100 at the end of each year for 8 years at 6% Offer Three $14,000 at the end of 8 years at 6% Which offer is best?
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You have been offered a choice of: Offer One $6,000 now Offer Two $1,100 at the end of each year for 8 years at 6% Offer Three $14,000 at the end of 8 years at 6% Which offer is best?
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- You are offered $80,000 today or $400,000 in 10 years. Assuming that you can earn 16 percent on your money, which should you choose? Question content area bottom Part 1 If you are offered $400,000 in 10 years and you can earn 16 percent on your money, what is the present value of $400,000? $enter your response here (Round to the nearest cent.)You are offered $100,000 today or $300,000 in 13 years. Assuming that you can earn 11 percent on your money, which should you choose? Question content area bottom Part 1 If you are offered $300,000 in 13 years and you can earn 11 percent on your money, what is the present value of $300,000?How much should you pay for the promise of $2,000 in 5 years? Assume you would like to earn 4.5% per year. Group of answer choices 1. $1,865 2. $2,000 3. $2,100 4. $1,605
- You are given two options: Option 1: 2,000 dollars cash on January 1st Option 2: 150 dollars on January 1st and then 100 dollars each month for twenty months beginning on February 1st I) What monthly IRR are both options the same? II) What option would you pick if the monthly rate of return is 0.80%?You are considering two insurance settlement offers. The first offer includes annual payments of $45,000 a year for 12 years with the first payment made at the beginning of the year. The other offer is the payment of one lump sum amount at the beginning of the year. You are trying to decide which offer to accept given the fact that your discount rate is 7%. What is the mininum amount that you will accept if you are to select the lump sum offer? • A. $540,000.00 • в. $357,420.88 • C. $412,738.96 • D. $382,440.35 • E. $437,358.40You are scheduled to receive $40,000 in two years. When you receive it, you will invest it for 6 more years at 7 percent per year. How much will you have in 8 years? Multiple Choice $45,837.07 $63,030.67 $57,027.75 $68,727.45 $60,029.21
- You would like to receive $6000 per month for 30 years after you retire in 40 years from now. The first monthly payment is to be received at the end of the 1st month after you retire. The retirement account is expected to provide 11% return. What is the amount you must deposit each year for 40 years to achieve your goal? Group of answer choices $28,921.22 $1,082.86 $3,956.71 $21,912.45 $2,233.41Suppose you are offered the alternative of receiving either $3,000 at the end of 8 years or $2,000 today. What interest would make you indifferent to your choice between $2,000 and the promise of $3,000 at the end of eight years?You have done the job substantially well so that your boss would like to offer you a present. He kindly gives you four options to choose. Using a discount rate of 4%, which option works best for you? Question 14 options: A single payment of $20,000 received in 3 years One payment of $25,000 immediately received today $8,000 per year for 3 years, with the first payment starting one year from now A growing perpetuity that pays $500 each year with the first payment starting two years from now. The perpetuity grows at a rate of 2% per year. All the presents stated are equally good!
- You are offered an investment that will pay •$200 in year 1, •$400 the next year, •$600 the following year, and •$800 at the end of the 4th year. •You can earn 14 percent on similar investments. What is the most you should pay for this one? Respuesta:As a prize, you are offered of one of the following three options:Option 1: $6,000 today, orOption 2: $8,500 in five years, orOption 3: $10,000 in seven years.Assuming you can earn 7% on your money, which option should you choose. (Brieflyexplain your choice and show all working to justify your answer.)Assume that your mother has offered you a choice of one of the three following Alternatives: $75,000 now; $2,200 per year for nine years; or $31,000 at the end of nine years. • Which alternative should you choose? You could earn 10% annually. • If you earn 11% annually. Would you still choose the same alternative?
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