A rich aunt has promised you $5,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 7% larger than the last payment. She will continue to show this generosity for
A rich aunt has promised you one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is
larger than the last payment. She will continue to show this generosity for
years, giving a total of payments. If the interest rate is , what is her promise worth today?
Homework Answers
5,000/ (1+0.07)* 20= 93,457.943925234
Answer: 93,458
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A rich aunt has promised you $5,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 7% larger than the last payment. She will continue to show this generosity for
A rich aunt has promised you $6,000 one year from today. In addition, each year after...
A rich aunt has promised you $6,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 3% larger than the last payment. She will continue to show this generosity for 20 years, g ng a total of 20 payments if the interest rate is 7%, what is her promise worth today? The present value of the aunt's promise is $(Round to the nearest dollar.)
A rich aunt has promised you $2,000 one year from today. In addition, each year after...
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A rich aunt has promised you $2,000 one year from today. In addition, each year after...
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A rich aunt has promised you $2,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversarydof the last payment) that is 3% larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 4%, what is her promise worth today? The present value of the aunt's promise is (Round to the nearest dollar.) P 4-34...
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