Question
1) Kaleb invests $80,000 today in a project. By investing in this project, she must also pay $10,000 two years from today. She will receive
1) Kaleb invests $80,000 today in a project. By investing in this project, she must also pay $10,000 two years from today. She will receive $100,000 one year from today by investing in the project. What is his annual internal rate of return for investing in the project?
2) Bob will receive 10 payments of $800 each, starting 18 months from today. Each payment received is one year apart. If his effective annual interest rate is 20%, what is the present value of all payments combined?
(a) $4,400 (b) $4,382 (c) $4,000 (d) $3,636 (e) $3,651
3) Gracie will receive $100 every day, starting one week from today. These payments will go on forever. If her stated annual interest rate is 10%, compounded continuously, what is the present value of all payments in total? Assume 365 days in each year.
Can someone help me solve without using excel?
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