you're opening a business, for the next three years in return for an up front payment of 10,000. You figure it will cost you $4,000 a year in supplies. what is the internal rate of return IRR?

Q: You are planning to deposit $4,200 into a financial investment that will pay annual interest rate of…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: Your parents say they will loan you $15,000 today for college. They would like to be repaid $21,000…

A: Present value = pv = $15,000 Future value = fv = $21,000 Time = t = 10 years

Q: Name: Course: Subject: Date: Use the net present value calculator in presenting the cash flow.…

A: The present value of the cash flows is the value at the present time with the help of a certain rate…

Q: Your first job out of college will pay you $81,000 in year 1 (exactly one year from today). You…

A: C1 =  $81,000 in year 1Salary growth rate, g = 7% per yearC2 = C1 x (1 + g)C3 = C2 x (1 + g) = C1 x…

Q: You are deciding to buy a car to commute to work given the comparatively low interest of 6% per…

A: A loan is a debt arrangement that provides financial assistance to a person to full fill a specific…

Q: You plan to invest $1,200 at the end of year 1, $2,000 at the end of year 2, and $3,700 at the end…

A: Given data; Amount deposited at the end of year 1 = $1200 Amount deposited at the end of year 2 = $…

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A: Due to inflation prices increase but if the interest rate do not increase in the proportion than…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

Q: An investment offers to pay you $8,000 a year for five years. If it costs $28,840, what will be your…

A: YEARS 5 PMT (MONTHLY DEPOSIT) 8000 PRESENT VALUE $28,840 FUTURE VALUE $0

Q: You planned to borrow $575,000 for a house at 2.9% interest for 30 years.  You find a house that you…

A: A loan is a sum of money obtained from outside sources such as banks and repaid over time in fixed…

Q: u are getting paid $8,000 a month, at the end of each working month. What is the present value of a…

A: Present value is the equivalent value of money today of the future value of money to be received…

Q: You want to buy a boat costing $35,000.  Your down payment is $7,000.  The remainder will be paid…

A: We have to calculate present value factor by considering monthly interest and from that we can…

Q: Suppose you want to buy a new house. You currently have $20,000, and you figure you need to have a…

A: Data given:Cash in hand= $20,000Down payment=10%Closing cost=5%Cost of home =150,000Rate of…

Q: WE'VE MOVED IN TO A NEW HOUSE! My spouse & I are planning to have our own home but have a limited…

A: Given: Particulars Amount Amount $20,000 Years 5 Interest rate 10%

Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…

A: The FV of an investment refers to the cumulative worth of the investment's cash flows at a future…

Q: An investment offers to pay you $10,000 a year for four years. If it costs $27,980, what will be…

A: given present value    = 27980 future value a year…

Q: You can purchase an equipment for $4,000. The equipment will provide benefits worth $900 a year. The…

A: We'll compare the price per year with the present value of cash inflows in order to arrive at a…

Q: You are saving money for a down payment on a new house. You intend to place $5,000 at the end of…

A: Future value:The future value is a financial concept that calculates or shows the value of money in…

Q: You are thinking of buying a house beside the College which you will rent to students. You expect to…

A: Present Value can be calculated using PV function in Excel:PV (rate, nper, pmt, [Fv], [type])Rate =…

Q: From your prior job, you built up a small retirement account. That account will start paying you…

A: Because of the fact that any sum today can be invested and grown overtime, the concept of money's…

Q: You have just received a windfall from an investment you made in a friend’s business. You will…

A: a) Present value = Future value / (1 + Rate)^Time Present value = $14,050/1.06 + $3,250/1.06^2 +…

Q: y a new car in three years and begin depositing $250 per month into a savings account that earns…

A: Future Value (FV) is a financial concept that represents the projected worth of a sum of money at a…

Q: Your friend has offered to lend you some money. You decide to borrow $1,800 and agree to pay back…

A: The borrowing options can be compared by making a comparison between deferred repayment amount…

Q: ave selected a new car to purchase for $19,500. If the car can be financed over a period of 4 years…

A: The given problem can be solved using PMT function in excel. PMT function computes instalment amount…

Q: You are buying a $10,000 second hand car with a down-payment of $3,000 and you finance the remaining…

A: Solution:- When a loan is taken, generally equal periodic installments are paid inclusive of…

Q: You wish to purchase a home for $500,000. You will make payments of $30,000 at the end of every year…

A: The present value of an annuity is the value today of a series of equal payments that are made at…

Q: You are looking to invest your savings and want to earn a 10% annualized return. You can choose from…

A: The idea of present value, in finance, is to determine the worth of future cash flows or a series of…

Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…

A: Period = 3 yearsGrowing annuity = $9000Growth rate = 20%Interest rate = 11%

Q: You have just completed your bachelor’s degree in business and applied for a job with a local bank.…

A: Hi, since you have posted multiple questions, I will answer only the first one as per our…

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year…

A: Mortgage period = 30 yearsPurchase price = $2,700,000Mortgage amount = 80% of purchase priceMonthly…

Q: Suppose that five years ago a corporation issued a 9-year bond with a coupon rate of 6.50% and the…

A: Bond price With coupon payment (C), period (n), yield (r) and face or par value (F), the bond price…

Q: You are contributing money to an investment account so that you can purchase a house in six (6)…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: the monthly loan amount will be                                    = p*[ r(1+r)n/(1+r)n-1]…

Q: What is the maximum that you would be willing to loan your brother for a $100 IOU if he promises to…

A: Since  Future value = Present value ×(1+Periodic Interest rate)^n Where, N= Number of periods = 1…

Q: consider purchasing a car that has a price of $18,700. You make payments for 6 years at an APR of…

A: A loan is a sum of money that is borrowed from a lender, with the agreement to repay the principal…

Q: You estimate your monthly gas and maintenance expenses for your delivery vehicles will be $1,500 a…

A: Monthly expenses (P) = $ 1500 Period = 7 Years Period in months (N) = 7*12 = 84 Annual interest rate…

Q: If you were to lend Rs. 1,700,000 for 1 year, 2 years, 3 years, 4 years and 5 years and charged 12%.…

A: Lending of money is the activity undertaken by all those individuals or group of individuals or…

Q: You are thinking of buying a house beside the College which you will rent to students. You expect to…

A: Present Value can be calculated using PV function in excelPV (rate, nper, pmt, [Fv], [type])Rate The…

Q: 3. If you receive $98 each month for 12 months and the discount rate is 0.07, what is the present…

A: In this Question we require to calculate the Present Value of Cash flows that we will receive every…