You have just received a windfall from an investment you made in a friend's business. She will be paying you $13,703 at the end of this year, $27,406 at the end of next year, and $41,109 at the end of the year after that (three years from today). The interest rate is 4.2% 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 $13,703 at the end of this year, $27,406 at the end of next year, and $41,109 at the end of the year after that (three years from today). The interest rate is 4.2% 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)?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....
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You have just received a windfall from an investment you made in a friend's business. She will be paying you $13,703 at the end of this year, $27,406 at the end of next year, and $41,109 at the end of the year after that (three years from today). The interest rate is 4.2% 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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