i am confused about numbers 1-4. can someone please help.
1) You have won a court case that will pay you 100,000 over the following scheduled payouts: 11/1/18 10,000 10,000 10,000 5,000 5/15/19 7/1/19 5,000 1/1/20 1/1/21 20,000 20,000 20,000 3/26/24 You have found a wonderful investment opportunity and want to cash out now in order to take advantage. You have found an online company who will buy you out of this instrument using 7.5% discount rate. How much would they give you? Once you get this cash you immediately investit in a 6 year CD that will be compounded monthly and has an annual interest rate of 4.75%. You will not contribute anything else to the initial value. How much will you have? What do you think of your actions? 2) You would like to start a business and have decided to move back into your parents basement as you save up the $50,000 you will need in starter costs. You procure a job that will allow you to contribute S550 into a savings account semi monthly (24 times a year. The account will be compounded at that same interval and will earn an annual Interest rate of 3.259%. The instrument only allows you to collect at the end of complete years. How many years will you need to invest your money to have over your goal and how much will you have? 3) Let's say you need to do move more quickly and so you put an initial investment in of 10,000 borrowed from a friend. Does that change the answer to $2...how many years to get to at least 50K and how much at the end of that year. Oh yeah, you need to pay back the friend monthly but she's giving you 10 years to do it, charging you 4.25% interest and wants payments made to her monthly. How much will that cost you per period AND how much over the 10.000 she gave you will it actually cost you? 4 You want to get to this 50,000 once and for all and want to do it 2.5 years. You want to hit the number exactly on the head in that 2.5 years and still can contbute the same amount but this time you will do $1,100 monthly and will get the same 3.259 rate. How much will your friend need to give you as an initial deposit to hit the 50K in 2 years? 1) You have won a court case that will pay you 100,000 over the following scheduled payouts: 11/1/18 10,000 10,000 10,000 5,000 5/15/19 7/1/19 5,000 1/1/20 1/1/21 20,000 20,000 20,000 3/26/24 You have found a wonderful investment opportunity and want to cash out now in order to take advantage. You have found an online company who will buy you out of this instrument using 7.5% discount rate. How much would they give you? Once you get this cash you immediately investit in a 6 year CD that will be compounded monthly and has an annual interest rate of 4.75%. You will not contribute anything else to the initial value. How much will you have? What do you think of your actions? 2) You would like to start a business and have decided to move back into your parents basement as you save up the $50,000 you will need in starter costs. You procure a job that will allow you to contribute S550 into a savings account semi monthly (24 times a year. The account will be compounded at that same interval and will earn an annual Interest rate of 3.259%. The instrument only allows you to collect at the end of complete years. How many years will you need to invest your money to have over your goal and how much will you have? 3) Let's say you need to do move more quickly and so you put an initial investment in of 10,000 borrowed from a friend. Does that change the answer to $2...how many years to get to at least 50K and how much at the end of that year. Oh yeah, you need to pay back the friend monthly but she's giving you 10 years to do it, charging you 4.25% interest and wants payments made to her monthly. How much will that cost you per period AND how much over the 10.000 she gave you will it actually cost you? 4 You want to get to this 50,000 once and for all and want to do it 2.5 years. You want to hit the number exactly on the head in that 2.5 years and still can contbute the same amount but this time you will do $1,100 monthly and will get the same 3.259 rate. How much will your friend need to give you as an initial deposit to hit the 50K in 2 years
