Question
1a. What is the present value of the following set of cash flows if the discount rate is 13.9%? (the cash flows occur at the
1a. What is the present value of the following set of cash flows if the discount rate is 13.9%? (the cash flows occur at the end of each period) (round answer to nearest penny and enter in the following format 12345.67) Year 0 cash flow = -1400 (a negative cash flow) Year 1 cash flow = 400 Year 2 cash flow = 2400 Year 3 cash flow = 1100 Year 4 cash flow = 2400
Answer:
1b. A credit card company charges you an interest rate of 1.72% monthly (i.e., 1.72% per month on the card's outstanding balance). This rate is not a per annum rate (i.e., not an APR) but a rate per month. The effective annual rate is ______. Enter your answer as a percentage rounding to 100th of a percent, e.g., 12.34)
Answer:
1c. How much must we invest at the end of each month to build a balance of $630,000 over 11 years if we earn 12% per annum? (Round to nearest penny and enter, for example, as 123456.78)
Answer:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started