Suppose that Sidney runs a microfinancing agency that lends money to people to start small businesses in poor countries.

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Suppose That Sidney Runs A Microfinancing Agency That Lends Money To People To Start Small Businesses In Poor Countries 1 (46.01 KiB) Viewed 37 times

Suppose That Sidney Runs A Microfinancing Agency That Lends Money To People To Start Small Businesses In Poor Countries 2 (44 KiB) Viewed 37 times

Suppose that Sidney runs a microfinancing agency that lends money to people to start small businesses in poor countries. Sidney lends at an interest rate of 5% a year. She is currently working out the details to lend Noah and Eliza some money. Sidney arranges for all of her clients to repay her one lump sum of $10,000 at the conclusion of the term of the loan. The amount of money that she lends them depends on the interest rate and the amount of time before repayment. Use the principle of present value to answer the questions. Noah decides that he will be able to repay Sydney in one year. How much will he borrow from Sidney today so that he pays. her back $10,000 in a year? Give your answer to the nearest cent. Eliza will need two years to repay the loan. How much will she borrow today so that she pays Sidney back $10,000 in two years? Give your answer to the nearest cent. $ $ 9615 Incorrect 9246 Incorrect

Question 3 of 7 > Suppose Clifford recently discovered oil in his fields, which greatly excites him because he can earn a profit of $43.00 per barrel based on present market conditions. Because production costs will be lower in five years, Clifford estimates that he can pump the oil out at a profit of $61.00 per barrel if he chooses to wait. If the interest rate currently is 4.00%, what is the present value of the oil if he waits five years? 74.22 Incorrect Based on this calculation, should Clifford pump the oil now or wait? He should wait. He should pump the oil now. Attempt 3