Suppose you have agreed to lend your roommate a certain amount of money today. Your roommate has promised to pay you back $5,000 two years from today and $7,000 four years from today. Assume the price of money is 5%, how much money will your roommate receive from you today?
Present value=cash flows*Present value of discounting factor(rate%,time period)
=5000/1.05^2+7000/1.05^4
which is equal to
=$10294.06(Approx).
Suppose you have agreed to lend your roommate a certain amount of money today. Your roommate...
Your grandfather has agreed to deposit a certain amount of money at the end of each year into an account paying 7 percent annually to help you go to graduate school. Starting next year, and for the following four years, he plans to deposit 7,637, 8,342, 7,252, 6,157, and 12,071 into the account. How much will you have at the end of the five years? Give your answer as a whole number.
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Self-Study Problem 6.02 Your grandfather has agreed to deposit a certain amount of money each year into an account paying 7.30 percent annually to help you go to graduate school. Starting next year, and for the following four years, he plans to deposit $2,900, $8,050, $7,600,丰6,400, and $12,000 into the account. How much will you have at the end of the five years? (Round answer to 2 decimal places, e.g. 15.25) Future value at end of five years
Please full calculation and explanation.
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Suppose you want to deposit a certain amount of money into a savings account and then leave it alone to draw interest for the next 10 years. At the end of 10 years you would like to have $10,000 in the account. How much do you need to deposit today make that happen? You can use the following formula, which is known as the present value formula, to find out: P = F / (1+ r)^n The terms in...
Can you help with the below Determining Interest Rates. The Benevolent Company has agreed to lend you funds to complete the last year of your degree. The Company will lend you $2,400 today, if you agree to repay a lump sum of $4,000 four years from now. What is the approximate annual rate of interest that Benevolent is charging you? A: A: