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1. 2. 3. 4. 5. If you deposit $24,000 today in a mutual fund that is expected to grow at an annual rate of
1. 2. 3. 4. 5. If you deposit $24,000 today in a mutual fund that is expected to grow at an annual rate of 8%, what will be the expected value of that investment: Five years from today Ten years from today Fifteen years from today Twenty years from today If a CFO plans to deposit $60,000 of excess cash in a bond fund at the end of each year the next 20 years, what will be the terminal value of that investment: - At a compounded rate of seven percent At a compounded rate of three percent You expect to receive a lump sum of $120,000 from a previous real estate investment at the end of a five year time horizon. What is the estimated present value of that investment return: - - - - If the discount rate is 3% If the discount rate is 6% If the discount rate is 9% If the discount rate is 12% Sibley Memorial Medical Center has just received a pledge from a wealthy benefactor to donate $15 million at the beginning of each year for the next 15 years. What is the estimated present value of this contribution if the discount rate is 6%? The heirs to a family fortune have chosen to donate some specified amount to a local non-profit health system. Through their financial advisors, they have offered the provider a choice between the payment of $60,000 per year into perpetuity starting today or a one-time lump sum payment of $700,000 today. Which of the two options is preferable from a present value standpoint if the appropriate discount rate is 5% ? Which of the two options is preferable from a present value standpoint if the appropriate discount rate is 13%?
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