Your grandfather has offered you a choice of one of the three alternatives: 1. Take Rs. 500,000 now 2. Take Rs 100,000 a year for eight years, or 3. Take Rs 1200,000 at the end of eight years. Required: 1. Assume you could earn 11% per annum, which alternative should you choose? 2. If you could earn 12% per annum, would you still choose the same alternative?

Assume the total cost of a college education will be $350,000 when your child enters college in 15 years. You presently have $67,000 to invest.What annual rate of interest must you earn on your investment to cover the cost of your child’s college education?

Marian Plunket owns her own business and is considering an investment. If she undertakes the​ investment, it will pay $5,440 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,360 plus an additional investment at the end of the second year of $6,800. What is the NPV of this opportunity if the interest rate is 1.6% per​ year? Should Marian take​ it?

Assume that you just inherited an annuity that will pay you $10,000 per year for 10 years, with the first payment being made today. A friend of your mother offers to give you $60,000 for the annuity. If you sell it, what rate of return would your mother’s friend earn on his investment? If you think a “fair” return would be 6%, how much should you ask for the annuity? What keys do I need to enter in a financial calculator to get the answers of (13.70%, $78,016.92)/ only show me the keys to enter in a financial calculaotr. not excel and not algebra