You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 29 comma 403 at the end of this year, $ 58 comma 806 at the end of next year, and $ 88 comma 209 at the end of the year after that (three years from today). The interest rate is 10.5 % 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 $ 29 comma 403 at the end of this year, $ 58 comma 806 at the end of next year, and $ 88 comma 209 at the end of the year after that (three years from today). The interest rate is 10.5 % 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)?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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....

See similar textbooks

Similar questions

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 put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% 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. 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.)
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)? 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. 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.)
K You have just received a windfall from an investment you made in a friend's business. She will be paying you $41,444 at the end of this year, $82,888 at the end of next year, and $124,332 at the end of the year after that (three years from today). The interest rate is 3.8% 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)?
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?