An athlete signs a contract that guarantees a $12 million salary 7 yr from now. Assuming that mon...
An athlete signs a contract that guarantees a $12 million salary 7 yr from now. Assuming that money can be invested at 6.2 % with interest compounded continuously, what is the present value of that year's salary? ROUND TO THE NEAREST DOLLAR AMOUNT
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An athlete signs a contract that guarantees a $12 million salary 7 yr from now. Assuming that mon...
A professional baseball player signs a contract for $164 million to play with a team for 7 years. He and his team agree...
A professional baseball player signs a contract for $164 million to play with a team for 7 years. He and his team agree that the contract will be spread out so that the player is paid beyond the 7 years. The payment plan for the contract is as follows: $17 million each year for years 1 through 7. $3.1 million each year for the next 9 years. $1.4 million each year for the next 7 years. You should assume that...
Find the present value (the amount that should be invested now to accumulate the following amount)...
Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated. $8000 at 6% compounded semiannually for 7 years The present value is $7. (Do not round until the final answer. Then round to the nearest cent as needed.)
Find the present value (the amount that should be invested now to accumulate the following amount)...
Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated. $9411.44 at 3.3% compounded annually for 4 years The present value is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated. $5600 at 4% compounded quarterly for...
Anthony invested a sum of money 4 yr ago in a savings account that has since paid interest at the rate of
9. Anthony invested a sum of money 4 yr ago in a savings account that has since paid interest at the rate of 7%/year compounded quarterly. His investment is now worth $22,438.81. How much did he originally invest? Please round the answer to the nearest cent. 10. Joe plans to deposit $300 at the end of each month into a bank account for a period of 2 yr, after which he plans to deposit S500 at the end of each month into the same...
n 2015, a running back signed a contract worth $62.1 million. The contract called for $12...
n 2015, a running back signed a contract worth $62.1 million. The contract called for $12 million immediately and a salary of $2.9 million in 2015, $8.3 million in 2016, $12 million in 2017, $8.8 million in 2018 and 2019, and $9.3 million in 2020. If the appropriate interest rate is 11 percent, what kind of deal did the running back scamper off with? Assume all payments other than the first $12 million are paid at the end of the...
QUESTION 2 (22 marks) a) Compute the sum to be invested now at 12% compounded monthly...
QUESTION 2 (22 marks) a) Compute the sum to be invested now at 12% compounded monthly so as to accumulate RM8,888 in 3 years. (3 marks) b) Compute the interest earned if RM9,600 is invested for 8 years at 8.8% compounded quarterly. (5 marks) c) A debt of RM22,000 will mature in 5 years' time. Assuming money is worth 6% compounded semiannually. Calculate, i. the present value of this debt, ii. the value of this debt at the end of...
Chris Smith will receive $75,220 on 5 years from now, from a trust fund established by...
Chris Smith will receive $75,220 on 5 years from now, from a trust fund established by his father. Assuming the appropriate interest rate for discounting is 10% (compounded semiannually), what is the present value of this amount today? (Round factor values to 5 decimal places, e.g. 1.25124. Round answers to the nearest whole dollar, e.g. 5,275.)
JESTION 2 (22 marks) a) Compute the sum to be invested now at 12% compounded monthly...
JESTION 2 (22 marks) a) Compute the sum to be invested now at 12% compounded monthly so as to accumulate RM8,888 in 3 years, DOES (3 marks b) Compute the interest earned if RM9,600 is invested for 8 years at 8.8% compound quarterly. (5 mar! =) A debt of RM22,000 will mature in 5 years' time. Assuming money is worth 6% compounded semiannually. Calculate, i. the present value of this debt, (3 m ii. the value of this debt at...
is this better 10) supposed state lottery price of 3 million is paid in 25 payments...
is this better
10)
supposed state lottery price of 3 million is paid in 25 payments of
$120,000 each at the end of each of the next 25 years if the money
is worth 12% compounded annually what is the present value of the
prize (rounds your answer to the nearest cent)
11) what amount must be set aside now to generate payments of
$50,000 at the beginning of each year for the next 12 years if
money is worth...
Check my work Part (a): It is said that the Indian who sold Manhattan for $40...
Check my work Part (a): It is said that the Indian who sold Manhattan for $40 was a sharp salesman. If he had put his $40 away at 5% compounded semiannually, it would now be worth more than $7 billion, and he could buy most of the now-improved land back! Assume that this seller invested on January 1, 1701, the $40 he received. (Enter amounts in whole dollars, not in billions. Round final answers to nearest whole dollar amount.) 0.25...
Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated. $8000 at 6% compounded semiannually for 7 years The present value is $7. (Do not round until the final answer. Then round to the nearest cent as needed.)
Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated. $9411.44 at 3.3% compounded annually for 4 years The present value is $ (Do not round until the final answer. Then round to the nearest cent as needed.) Find the present value (the amount that should be invested now to accumulate the following amount) if the money is compounded as indicated. $5600 at 4% compounded quarterly for...
QUESTION 2 (22 marks) a) Compute the sum to be invested now at 12% compounded monthly so as to accumulate RM8,888 in 3 years. (3 marks) b) Compute the interest earned if RM9,600 is invested for 8 years at 8.8% compounded quarterly. (5 marks) c) A debt of RM22,000 will mature in 5 years' time. Assuming money is worth 6% compounded semiannually. Calculate, i. the present value of this debt, ii. the value of this debt at the end of...
JESTION 2 (22 marks) a) Compute the sum to be invested now at 12% compounded monthly so as to accumulate RM8,888 in 3 years, DOES (3 marks b) Compute the interest earned if RM9,600 is invested for 8 years at 8.8% compound quarterly. (5 mar! =) A debt of RM22,000 will mature in 5 years' time. Assuming money is worth 6% compounded semiannually. Calculate, i. the present value of this debt, (3 m ii. the value of this debt at...
is this better
10)
supposed state lottery price of 3 million is paid in 25 payments of
$120,000 each at the end of each of the next 25 years if the money
is worth 12% compounded annually what is the present value of the
prize (rounds your answer to the nearest cent)
11) what amount must be set aside now to generate payments of
$50,000 at the beginning of each year for the next 12 years if
money is worth...
Check my work Part (a): It is said that the Indian who sold Manhattan for $40 was a sharp salesman. If he had put his $40 away at 5% compounded semiannually, it would now be worth more than $7 billion, and he could buy most of the now-improved land back! Assume that this seller invested on January 1, 1701, the $40 he received. (Enter amounts in whole dollars, not in billions. Round final answers to nearest whole dollar amount.) 0.25...
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