What is the value of a promise to receive $20 5 years from today, growing by 4% forever, if the interest rate is 10% per year?

A shady individual has approached you for a loan. He promises to pay you $500at the end of five years. If your required rate of return is a stated annualrate of 20%, compounded monthly, how much would you be willing to lend to himtoday?

Management of TSC, Inc. is evaluating a new $79,000 investment with the following estimated cash flows:   Year Cash Flow 1 $ 13,000   2   29,000   3   47,000   4   61,000     The firm’s cost of capital is 14 percent and the project will require that the firm spend $25,000 to terminate the project. Use Appendix B to answer the question. Use a minus sign to enter a negative value, if any. Round your answer to the nearest dollar. The NPV of the investment is $   . Should the firm make the investment? The firm  make the investment.

You are offered an annuity that will pay $14,000 per year for 13 years (the first payment will be made today). If you feel that the appropriate discount rate is 8%, what is the annuity worth to you today? $110,652.86 $300,934.15 $119.505.09 $325,008.88 $242,876.85 4.0

Your retirement policy lets you receive in 35 years equal annual payments of $10,000 for 10 years.  The relevant interest rate is 6%.  What is its PV?  (Hint: this is a two step problem; find what the value of the retirement annuity will be 35 years from now and THEN find the present value of that sum in today’s dollars.

1) What is the future value of $5480 6 years from now at 7 percent? 2) What is the future value of $2100 saved each year for 9 years at 10 percent? 3) What is the amount a person would have to deposit today (present value) at 11 percent interest rate to have $8500 saved 9 years from now. 4) What is the amount you would have to deposit today to be able to take out $2070 a year for 2 years from an account earning 14 percent. 5) If you desire to have $38300 for a down payment for a house in 11 years, what amount would you need to deposit today? Assume that your money will earn 4 percent. 6) If you desire to have $38300 for a down payment for a house in 11 years, what amount would you need to deposit today? Assume that your money will earn 4 percent. 7) Carla Lopez deposits $11100 a year into her retirement account. If these funds have an average earning of 3 percent over the 14 years until her retirement, what will be the value of her retirement account? 8) If a person spends $28 a week…