Question

You are investing $28,000 today and in return you will receive $10,000 in a year and...

You are investing $28,000 today and in return you will receive $10,000 in a year and $X in 2 years and $15,000 in 3 years. If the interest rate is 10% per year then what it minimum value of $X that you will accept.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are investing $28,000 today and in return you will receive $10,000 in a year and...
You are investing $28,000 today and in return you will receive $10,000 in a year and $X in 2 years and $15,000 in 3 years. If the interest rate is 10% per year then what it minimum value of $X that you will accept. 1. $11,245 2. $12,512 3. $9,243 4. $12,253 5. $7,639
You receive $100 per year for the next 10 years starting 1 year from today for...
You receive $100 per year for the next 10 years starting 1 year from today for a total of 10 payments. If the interest rate that you receive is 5% per year and the inflation rate is 3% per year, draw the cash flow diagram in constant dollars with a base year of 0. Solve for the future value at year 10 using constant dollar analysis.
You receive $100 per year for the next 10 years starting 1 year from today for...
You receive $100 per year for the next 10 years starting 1 year from today for a total of 10 payments. If the interest rate that you receive is 5% per year and the inflation rate is 3% per year, draw the cash flow diagram in constant dollars with a base year of 0. Solve for the future value at year 10 using constant dollar analysis.
What is the future value of $10,000 after 15 years when investing 4%? What is the...
What is the future value of $10,000 after 15 years when investing 4%? What is the future value in the preceding problem if the interest is compounded monthly? What is the future value after 22 years of year-end deposits of $50,000 earning 3%? What is the future value in the preceding problem if deposits are year-beginning? What is the most you should pay today for a piece of land which will be worth $500,000 in 4 years if you want...
Suppose that an investment opportunity has a cost today of $100,000. You will receive a payment...
Suppose that an investment opportunity has a cost today of $100,000. You will receive a payment of $30,000 one year from today. You will receive a payment of $60,000 two years from today. You will receive a payment of $50,000 three years from today. Finally, you will have to pay $10,000 to dispose of the asset four years from today. What is the net present value of the costs and benefits if the interest rate is 10%?
You are planning for your future needs and retirement. You want to receive $10,000 ten years...
You are planning for your future needs and retirement. You want to receive $10,000 ten years from today and a retirement annuity of $50,000 per year for 15 years with the first payment 15 years from today. To pay for this, you will make 5 payments of $A per year beginning today and 4 annual payments of $2A with the first payment 13 years from today. With an interest rate of 8% what is the value for A?
You will receive the following cash payments as a retirement settlement: Year 0 1 2 3...
You will receive the following cash payments as a retirement settlement: Year 0 1 2 3 4 Amount $10,000 $20,000 $50,000 $50,000 $75,000 In place of the above you are offered a check today for $182,000. Assuming an interest rate of 4%, which would you choose? If an interest rate of 5% was used would this change your selection? Explain. You are offered a choice as follows: $10,000 per year for 10 years or an amount today of $69,000. Assuming...
You are considering investing in a common stock. You will receive a payment of $60 one...
You are considering investing in a common stock. You will receive a payment of $60 one year from today from the stock. You will continue to receive payments from the stock each year forever but the payments will become 8 percent larger each year. You require a 12 percent rate of return on this type of investment. How much is the most you should be willing to pay to buy a share of this stock? A. $1,500 B. $750 C....
You want to receive $50,000 five years from today and a retirement annuity of $100,000 per...
You want to receive $50,000 five years from today and a retirement annuity of $100,000 per year for 25 years with the first payment 10 years from today. To pay for this, you will make 5 payments of A per year beginning today and 10 annual payments of A with the first payment 8 years from today. With an interest rate of 8%, what is the value for A?
1.) You just won the $85 million lottery. You will receive $2.6 million a year for...
1.) You just won the $85 million lottery. You will receive $2.6 million a year for the next 30 years plus an additional payment of $7 million at the end of 30 years. The interest rate is 6 percent. How much is your lottery prize worth today? 2.)If you owe $51,000 payable at the end of eight years, what amount should your creditor accept in payment immediately if the interest rate on the loan is 13 percent? 3.) You have...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT