Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 04, 2024

You would like to have $1,500 in 14 years. What is the present value (current sum needed NOW for the future) at: a) 5% interest

You would like to have $1,500 in 14 years. What is the present value (current sum needed NOW for the future) at: a) 5% interest AND b) 20% interest rate? Explain why the present value is lower when the interest rate is higher

https://dqydj.com/present-value-calculator/

Step by Step Solution

There are 3 Steps involved in it

Step: 1

the present value formulaeFuture value present value interest factor present value F... 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

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

Recommended Textbook for

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

15th edition

1337671002, 978-1337395250

More Books

Students also viewed these Finance questions

Question

CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...

Answered: 1 week ago

Question

★★★★★

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

Answered: 1 week ago

Question

★★★★★

13. What is a lower bound for the price of 3-month call option on a non- dividend-paying stock when the stock price is $50, the strike price is $45, and the 3-month risk-free interest rate is 8%?...

Answered: 1 week ago

Question

★★★★★

What is the maximum height above ground that a projectile of mass 0.790 kg, launched from ground level, can achieve if you are able to give it an initial speed of 80.3 m/s?

Answered: 1 week ago

Question

★★★★★

Some hotels' FOMs authorize their front office agents to adjust room charges up to the amount of a guest's total charges for their stay. Other FOMs limit the dollar amount of adjustment that can be...

Answered: 1 week ago

Question

★★★★★

Why would a manager care about the value assigned to inventory transferred in from another department?

Answered: 1 week ago

Question

★★★★★

Customers arrive at a bank at a Poisson rate . Suppose two customers arrived during the first hour. What is the probability that (a) both arrived during the first 20 minutes? (b) at least one arrived...

Answered: 1 week ago

Question

★★★★★

Who owns a corporation? Describe the process whereby the owners control the forms management. What is the main reason that an agency relationship exist in the corporate forms of organization? In this...

Answered: 1 week ago

Question

★★★★★

Problem 10 Intro The table below shows the expected rates of return for three stocks and their weights in some portfolio: Stock B Stock C Stock A 0.3 0.2 0.5 State Portfolio weights Probability 0.3...

Answered: 1 week ago

Question

★★★★★

Design a second-order band-pass filter to select the frequency range of 36khz +/- 20kHz. With the aid of a gain and phase plot, explain how an unwanted oscillation can be avoided to attain stability....

Answered: 1 week ago

Question

★★★★★

1. An individual has $4,000 to invest and three opportunities are available to him. Each opportunity requires deposits in $1,000 amounts; the investor may allocate a;; the money to just one...

Answered: 1 week ago

Question

★★★★★

The Loquat Corporation has book net income of $170,200 for the current year. Included in this figure are the following items, which are reported on the corporation's Schedule M-1, Reconciliation of...

Answered: 1 week ago

Question

★★★★★

Use the balance sheet and income statement below. VALIUM'S MEDICAL SUPPLY CORPORATION Balance Sheet as of December 31, 2024 and 2023 (in millions of dollars). Current assets: Assets Cash and...

Answered: 1 week ago

Question

★★★★★

B. Credit Card Volume: The total credit card volume for Visa, MasterCard, American Express, and Discover has increased dramatically in recent years, as shown in the table below. (Source, CardWeb...

Answered: 1 week ago

Question

★★★★★

Two desks are setup parallel (customer may choose any of these two desks). Each desk takes 26 minutes with each customer. What is the throughput of this parallel system? Provide your answer in...

Answered: 1 week ago

Question

★★★★★

Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc., to dispense frozen yogurt products under The Yogurt Place name. Mr. Swanson has assembled the following information...

Answered: 1 week ago

Question

★★★★★

Graph the following conic sections, labeling vertices, foci, directrices, and asymptotes (if they exist). Give the eccentricity of the curve. Use a graphing utility to check your work. 10 5 + 2 cos 0

Answered: 1 week ago

Question

★★★★★

A call option on Rosenstein Corporation stock has a market price of $7. The stock sells for $31 a share, and the option has an exercise price of $25 a share. a. What is the exercise value of the call...

Answered: 1 week ago

Question

★★★★★

Six-month T-bills have a nominal rate of 2%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 1.25%. In the spot exchange market, 1 yen equals $0.0091. If interest...

Answered: 1 week ago

Question

★★★★★

Carlsbad Corporations sales are expected to increase from $5 million in 2018 to $6 million in 2019, or by 20%. Its assets totaled $3 million at the end of 2018.Carlsbad is at full capacity, so its...

Answered: 1 week ago

Question

★★★★★

Plot phase portraits for the Linard system x = y (x + x3), y = x, when (a) = 0.01, and (b) = 10.

Answered: 1 week ago

Question

★★★★★

By considering the flow across the square with coordinates (1, 1), (1,1), (1,1), (1, 1), centered at the origin, prove that the system x = y + x cos(x), y = x y3 has a stable limit cycle. Plot the...

Answered: 1 week ago

Question

★★★★★

The following three differential equations are used to model a combined predatorprey and competing species system: x = x(a10 a11x + a12y a13z), y = y(a20 a21x a22y a23z), z = z(a30 + a31x ...

Answered: 1 week ago

Previous Question Next Question