Question
What is the value today of a money machine that will pay $6,306.00 per year for 31.00 years? Assume the first payment is made today
What is the value today of a money machine that will pay $6,306.00 per year for 31.00 years? Assume the first payment is made today and that there are 31.0 total payments. The interest rate is 7.00%.
Derek will deposit $4,654.00 per year for 28.00 years into an account that earns 11.00%. The first deposit is made next year. How much will be in the account 28.0 years from today?
Derek will deposit $9,288.00 per year for 21.00 years into an account that earns 4.00%, The first deposit is made next year. How much will be in the account 38.00 years from today?
Derek will deposit $2,896.00 per year for 25.00 years into an account that earns 6.00%. The first deposit is made today. How much will be in the account 25.0 years from today? Note that he makes 25.0 total deposits.
Derek will deposit $631.00 per year into an account starting today and ending in year 24.00. The account that earns 5.00%. How much will be in the account 24.0 years from today?
Derek has the opportunity to buy a money machine today. The money machine will pay Derek $38,864.00 exactly 10.00 years from today. Assuming that Derek believes the appropriate discount rate is 4.00%, how much is he willing to pay for this money machine?
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