Please provide solutions to the following problems: You receive a cash bonus, but your employer gives you two options:
Please provide solutions to the following problems: You receive a cash bonus, but your employer gives you two options: receive $8,000 right now or $10,000 two years from now. Assuming an interest rate of 12% what would be the best option. Show all calculations. Find the future value of $500 in 6 years at 9%. What is the present value of an investment that will generate $300 per year for 15 years at 6%? If your grandparents decide to give you $30,000 when you complete your degree what might you offer to them today as an amount as opposed to waiting the 4 years (assume a 5% interest rate). Calculations must be shown for full credit. Also they help in awarding partial credit at the instructors discretion. If using formulas, a financial calculator, or online calculator is used, what value is entered for each variable must be given. If Excel is used the spreadsheet with the formula must be submitted.
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