Question
1. Sheffield Corp. will receive $19500 today (January 1, 2020), and also on each January 1st for the next five years (2021 2025). What is
1. Sheffield Corp. will receive $19500 today (January 1, 2020), and also on each January 1st for the next five years (2021 2025). What is the present value of the six $19500 receipts, assuming a 10% interest rate?
$84928.
$93420.
$147768.
$165500.
2. Coronado Industries makes an investment today (January 1, 2020). They will receive $22500 every December 31st for the next six years (2020 2025). If Coronado wants to earn 12% on the investment, what is the most they should invest on January 1, 2020?
$92507.
$103608.
$195090.
$204503.
3. Mary and James want to begin saving for their baby's college education. They estimate that they will need $115000 in twelve years. If they are able to earn 2% per annum, how much must be deposited at the end of each of the next twelve years to fund the education?
$9450.
$10874.
$10134.
$8574.
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