How much should you be willing to pay for a lump sum of $2,000 7 years...
How much should you be willing to pay for a lump sum of $7,000 3 years from now if you can earn 2% every 6 months on other similar investments The amount you should be willing to pay, PV, is S (Round to the nearest cent.)
Assume that a borrower is willing to pay you $2,000 at the end of three years in return for a sum of money now. To receive a return of 10%, how much are you willing to lend now? $1,502 $1,818 $1,786 $1,802
1. You can buy a contract which will pay $ 10,000 per year for 3 years for $26,500. If investments of similar risk return 8% per annum, compounded annually, should you buy the contract? 2. How much do you need to deposit TODAY into an account which earn 8% ANNUAL interest compounded Quarterly so that you will have $ 50,000 in the account seven years from now? 3. What ANNUAL rate of return did an investment pay if a $...
Solve for the Present Value of a Lump Sum with the Following Situation: Investor has been offered an investment opportunity that is expected to provide $1,300 cash inflow at the end of five years. Investor is able to make 5% compounded annually on other investments. (This 5% discount rate can be thought of as an opportunity cost of capitalthe return the investor is forgoing on an alternative investment of equal risk). How much can the investor pay today for this...
a. You are saving for retirement 10 years from now. How much should you invest today so you will have an annuity of $20,000 per year for 20 years starting from the 11" year? b. If you were to invest $10,000 today @6%, how much would you have at the end of 15 years? C. You are planning to save $100,000 for a yacht purchase 5 years from now. If you believe you can earn an 8% rate of return,...
A security will pay a lump sum of $1000 in 8 years. There are no other payments. If the yield to maturity is 4% then the price should be about:
Please help! Please explain with calculator inputs. Thank you. You have just won a lawsuit. The settlement will pay either a single lump sum settlement today, or the following cash flows (assume the following cash flows come at the end of the period): Year 1: $10,000 Years 2-4: $ 5,000 Years 5 onward (forever): $ 3,000 You can presently earn 8% on your investments. What is the least you should accept today as a lump sum settlement?
Messi Company is considering an investment that will return a lump sum of $880,000 7 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Messi Company pay for this investment to earn an 12% return? (Round answer to 2 decimal places, e.g. 25.25.) Messi Company should pay $ ??
You are trying to decide how much to save for retirement. Assume you plan to save $5,000 per year with the first investment made one year from now. You think you can earn 5.0% per year on your investments and you plan to retire in 27 years, immediately after making your last S5,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing S5,000 per year, you wanted to...
Sheridan Company is considering an investment that will return a lump sum of $490,000 5 years from now. What amount should Sheridan Company pay for this investment in order to earn a 3% return? what is the: Amount to pay for this investment rounded to 2 decimals