Question

Which would you prefer -- $10,000 now, $20,000 10 years from now, or $30,000 20 years...

Which would you prefer -- $10,000 now, $20,000 10 years from now, or $30,000 20 years from now, assuming

a. a 6% annual interest rate?

b. an 8% annual interest rate?

c. a 10% annual interest rate?

Homework Answers

Know the answer?
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
Similar Questions
Of the following car financing options, which one would you prefer while assuming that you prefer...
Of the following car financing options, which one would you prefer while assuming that you prefer paying the least amount of dollars and that you face a 10% annual compound interest rate on all your financial decisions? ********I'm looking for a break down for each option here************ A payment $10,000 today and another of $10,000 in one year from today. A lump-sum payment of $19,000 today only. A lump-sum payment of $20,000 in two years from today. A lump-sum payment...
1. You want to get $20,000 in your account 8 years from now. What is the...
1. You want to get $20,000 in your account 8 years from now. What is the money to be deposited in your current account, if the bank provides compound interest of 12% per year? 2. It is assumed that you deposit $1,000 now, 2 years to come, 4 years to come, 6 years to come and 8 years to come. Compound interest of 8% per year is given in this deposit. Determine the value of your deposit at the end...
You bought an asset for $10,000 and sold it for $20,000 after 10 years. What was...
You bought an asset for $10,000 and sold it for $20,000 after 10 years. What was the annual rate of return on this investment?
You are analyzing two machines. With the first machine, you would owe $10,000 for six years....
You are analyzing two machines. With the first machine, you would owe $10,000 for six years. With the second machine you would owe $7,000 one year from now; $9,000 two years from now; $11,000 three years from now; $13,000 four years from now; and $20,000 five years from now. Using a discount rate of 6%, compute the net present value and annuity equivalent for each machine. Which machine would you choose?
Which of the following would you prefer? $500 to be received in 10 years when rates...
Which of the following would you prefer? $500 to be received in 10 years when rates are 8 percent $300 today $600 to be received in 12 years when rates are 8 percent $700 to be received in 12 years when rates are 7 percent
A 10-year annuity of twenty $10,000 semiannual payments will begin 11 years from now, with the...
A 10-year annuity of twenty $10,000 semiannual payments will begin 11 years from now, with the first payment coming 11.5 years from now. a. If the discount rate is 9 percent compounded monthly, what is the value of this annuity 8 years from now? b. What is the current value of the annuity?
subject related to future value and present value Scenario: You are offered $25,000 now or $30,000...
subject related to future value and present value Scenario: You are offered $25,000 now or $30,000 five years from now with a simple annual rate of 4.5% (0.045). Which option would you choose ($25,000 now or $30,000 in five years) and why? a - choose $30,000 in five years because it is worth more than $25,000 b - choose $25,000 now because it will grow to a larger sum in five years c - choose $30,000 in five years because...
What is the present value of $200 to be received two years from now, with an...
What is the present value of $200 to be received two years from now, with an interest rate of 5%? You deposit $2000 today at 6% interest. How much will you have in 5 years? You invest $5,000 today. You will earn 8% interest. How much will you have in 4 years? You have $450,000 to invest. If you think you can earn 7%, how much could you accumulate in 10 years? You deposit $300 each year for 15 years...
You invest $8,000 now and get $10,000 back in 8 years. (A) What nominal interest rate...
You invest $8,000 now and get $10,000 back in 8 years. (A) What nominal interest rate convertible every four months did you earn? (B) What nominal discount rate compounded monthly did you earn? (C) What annual effective rate of discount did you earn?
Assume that 5 years from now you will need RM2000. Your bank compounds interest at a...
Assume that 5 years from now you will need RM2000. Your bank compounds interest at a 6% annual rate. b. If you want to make equal payments at the end of Years 1 through 5 to accumulate the RM2,000, how large must each of the 5 payments be? c. If your father were to offer either to make the payments calculated in part (b) or to give you a lump sum of RM1,050 one year from now, which would you...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT