Question
What is the value today of a money machine that will pay $1,029.00 per year for 9.00 years? Assume the first payment is made today
What is the value today of a money machine that will pay $1,029.00 per year for 9.00 years? Assume the first payment is made today and that there are 9.0 total payments. The interest rate is 13.00%.
Derek will deposit $4,541.00 per year for 24.00 years into an account that earns 7.00%. The first deposit is made next year. How much will be in the account 24.0 years from today?
Derek will deposit $3,736.00 per year for 30.00 years into an account that earns 11.00%, The first deposit is made next year. How much will be in the account 39.00 years from today?
Derek will deposit $211.00 per year for 8.00 years into an account that earns 10.00%. The first deposit is made today. How much will be in the account 8.0 years from today? Note that he makes 8.0 total deposits.
Derek will deposit $427.00 per year into an account starting today and ending in year 23.00. The account that earns 11.00%. How much will be in the account 23.0 years from today?
Derek has the opportunity to buy a money machine today. The money machine will pay Derek $34,669.00 exactly 14.00 years from today. Assuming that Derek believes the appropriate discount rate is 12.00%, how much is he willing to pay for this money machine?
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