Question
Your brother has asked you for a loan and has promised to pay you $6000 at the end of three years. If you normally earn 7.5% per year, how much will you be willing to lend your brother if you view this purely as a financial transaction(If you don’t give your brother a special deal)? (Round to nearest penny) amount to be invested today:
xT Your answer is incorrect. Try again Your brother has asked you for alan and has premised to pay you S6,000 at the end of three year you normally invest to earn 7 50 percent per yeac how much-mbe w geo 1 brother ir yo view th dto a. at nancial transaction 0.e yo a doet ve Your brother a spedal deal)? (If you solve this problem with algebra mind Intermediate cakulatiom eo 6 decinal paip, a, aer cases round your fine. Cück if you would like to Show Work for this qwestion: Ocen Show Wock
0 0
Add a comment Improve this question Transcribed image text
Know the answer?
Add Answer to:
Your brother has asked you for a loan and has promised to pay you $6000 at...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Your brother has asked you for a loan and has promised to pay you $8,600 at...

    Your brother has asked you for a loan and has promised to pay you $8,600 at the end of three years. If you normally invest to earn 7.70 percent per year, how much will you be willing to lend to your brother if you view this purely as a financial transaction (i.e., you don’t give your brother a special deal)? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final...

  • Problem 5.11 Your brother has asked you for a loan and has promised to pay you...

    Problem 5.11 Your brother has asked you for a loan and has promised to pay you $5,450 at the end of three years. If you normally invest to earn 7.60 percent per year, how much will you be willing to lend to your brother if you view this purely as a financial transaction (i.e., you don't give your brother a special deal)? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round...

  • Exercise 3.11 You brother has asked you for a loan and has promised to pay back...

    Exercise 3.11 You brother has asked you for a loan and has promised to pay back $7,000 at the end of three years. If you normally invest to earn 8 percent per annum, how much will you be willing to lend to your brother? (Do not enter the $ sign in your answer, if you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest cent.)

  • 10. Present value: Maria Addai has been offered a future payment $750 of compounded annually, on...

    10. Present value: Maria Addai has been offered a future payment $750 of compounded annually, on her investment, what should she pay for this investment today? two years from now. If she can earn 6.5 percent, 11. Present value: Your brother has asked you for a loan and has promised to pay you$7,750 at the end of three years. If you normally invest to earn 6 percent per year, how much will you be willing to lend to your brother...

  • Your brother has asked you to help him with choosing an investment. He has $4,500 to...

    Your brother has asked you to help him with choosing an investment. He has $4,500 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0400 annually with the interest being paid quarterly. What will be the value of the investment in two years? Round to two decimal places

  • Please answer the following! Thank you! 1.)Jennifer Davis wants to accumulate $16,000 by the end of...

    Please answer the following! Thank you! 1.)Jennifer Davis wants to accumulate $16,000 by the end of 12 years. If the annual interest rate is 6.40 percent and interest compounds semiannually, how much will she have to invest today to achieve her goal? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.) Present value of investment= ? 2)Your brother has asked you for a loan...

  • Your brother wants to borrow $9,500 from you. He has offered to pay you back $12,750...

    Your brother wants to borrow $9,500 from you. He has offered to pay you back $12,750 in a year. If the cost of capital of this investment opportunity is 10%​, what is its​ NPV? Should you undertake the investment​ opportunity? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged. If the cost of capital of this investment opportunity is 10%​, what is its​ NPV? The NPV...

  • Question 7 (1 point) Your brother has asked you to help him with choosing an investment....

    Question 7 (1 point) Your brother has asked you to help him with choosing an investment. He has $6,400 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0500 annually with the interest being paid quarterly. What will be the value of the investment in two years? Round to two decimal places. Question 8 (1 point) You are evaluating a growing perpetuity product from a large financial services firm....

  • Please solve using financial calculator only and show work. Thank you. 28. Your brother has asked you to help him with c...

    Please solve using financial calculator only and show work. Thank you. 28. Your brother has asked you to help him with choosing an investment. He has $5,200 to invest today for a period of five years. You identify a bank CD that pays an interest rate of 3.60 percent with the interest being paid quarterly. What will be the value of the investment in five years? 29. Tim has loaned money to his brother at an interest rate of 6...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT