Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the present value (PV) of 80,000 received six years from now, assuming the interest rate is 4% per year 110,644 53,741 63,225 52,000

What is the present value (PV) of 80,000 received six years from now, assuming the interest rate is 4% per year

  1. 110,644
  2. 53,741
  3. 63,225
  4. 52,000

If the risk-free rate of interest (rf) is

7%, then you should be indifferent between receiving $ 250 in one year or

  1. $250.00 today.
  2. $280.37 today
  3. $233.64 today.
  4. none of the above

What is the future value of (PV) of $50,000 in ten years, assuming the interest rate is 12% per year?

  1. 31,500
  2. 155,292
  3. 139,763
  4. 131,999

Stella deposits $4,400 in a saving account at a bank that offers interest of 5.8%on such accounts. What is the value of the money in her savings account in one years time?

  1. $4,159
  2. $4,655
  3. $255
  4. $6,517

.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Pillars Of Finance The Misalignment Of Finance Theory And Investment Practice

Authors: G. Fraser-Sampson

2014th Edition

1137264055, 978-1137264053

More Books

Students also viewed these Finance questions