You have just received a windfall from an investment you made in a friend's business. He will be paying you $11,917 at the end of this year, $23,834 at the end of the following year, and $35,751 at the end of the year after that (three years from today). The interest rate is 4.7% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 45236 at the end of this year, $ 90472 at the end of next year, and $ 135708 at the end of the year after that (three years from today). The interest rate is 3.1 % per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?You have just received a windfall from an investment you made in a friend's business. She will be paying you $11,730 at the end of this year, $23,460 at the end of next year, and $35,190 at the end of the year after that (three years from today). The interest rate is 8.1% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.) iew an example *** Get more help - Clear all
- You have just received a windfall from an investment you made in a friend's business. He will be paying you $17,752 at the end of this year, $35,504 at the end of the following year, and $53,256 at the end of the year after that (three years from today). The interest rate is 11.7% per year. a. What is the present value of b. What is the future value of your windfall in three years (on the date of the last payment)? your windfall? a. What is the present value of your windfall? The present value of your windfall is $ (Round to the nearest dollar.) b. What is the future value of your windfall in three years (on the date of the last payment)? The future value of your windfall in three years is $ (Round to the nearest dollar.)You have just received a windfall from an investment you made in a friend's business. He will be paying you $22,654 at the end of this year, $45,308 at the end of the following year, and $67,962 at the end of the year after that (three years from today). The interest rate is 14.1% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?You have just received a windfall from an investment you made in a friend's business. She will be paying you $11,701 at the end of this year, $23,402 at the end of next year, and $35,103 at the end of the year after that (three years from today). The interest rate is 13.6% per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? a. What is the present value of your windfall? The present value of your windfall is $. (Round to the nearest dollar.)
- An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of year 6. If the rate of interest earned on the investment is 8%, what is the present value of this investment? What is its future value? How do you solve this with excel?nAn investment pays you $100 at the end of each of the next 3 years. The investment will then pay you $200 at the end of Year 4, $300 at the end of Year 5, and $500 at the end of Year 6. If the interest rate earned on the investment is 8 percent, what is its present value? What is its future value?An investor has purchased an investment which offers him 30 annual payments of dollar 1,200 per year. The payment starts two years from today. Annualized rates of interest are 13%.What is the present value of this investment?
- Suppose you have the opportunity to make an investment in a real estate venture that expects to pay investors 750 dolar at the end of each month for the next eight years . You believe that a reasonable return on your investment should be an annual rate of 15 percent compounded monthly.a. How much should you pay for the investment?b. What will be the total sum of cash you will receive over the next eight years?c. What do we call the difference between (a) and (b)?Suppose you have the opportunity to make an investment in a real estate venture that expects to pay investors $750 at the end of each month for the next eight years. You believe that a reasonable return on your investment should be an annual rate of 15 percent compounded monthly.a. How much should you pay for the investment?b. What will be the total sum of cash you will receive over the next eight years?c. What do we call the difference between (a) and (b)?Suppose you are going to invest $11,000 per year for six years. The appropriate interest rate is 9 percent. What is the future value if the payments are made on the last day of the year? What if the payments are made on the first day of the year? a) $82,756.68; $90,204.78 b) $90,204.78; $82,756.68 c) $49,345.10; $53,786.16 d) $53,786.16; $49,345.10