Problem #1 If you invest $7,000 two years from now, how much will be in the account 10 years from now if i = 7% compound
Posted: Sun Apr 10, 2022 8:45 am
Problem #1
If you invest $7,000 two years from now, how much will be in the
account 10 years from now if i = 7% compounded
annually?
Problem #2
Your company seeks to take over Good Deal Company. Your
company’s offer for Good Deal is $5,000,000 in cash upon signing
the agreement followed by 7 annual payments of $200,000 starting
one year later. The time value of money is 9%. What is the present
value of your company’s offer?
Problem #3
You rent an apartment for $1550 per month, payable at the
beginning of the month. An initial deposit of $550 is required.
Utilities are an additional $250 per month payable at the end of
the month. The deposit is refundable at the time you move out,
assuming a clean apartment in good condition. Draw a
monthly cash flow diagram only, assuming
you keep the apartment for 12 full months.
If you invest $7,000 two years from now, how much will be in the
account 10 years from now if i = 7% compounded
annually?
Problem #2
Your company seeks to take over Good Deal Company. Your
company’s offer for Good Deal is $5,000,000 in cash upon signing
the agreement followed by 7 annual payments of $200,000 starting
one year later. The time value of money is 9%. What is the present
value of your company’s offer?
Problem #3
You rent an apartment for $1550 per month, payable at the
beginning of the month. An initial deposit of $550 is required.
Utilities are an additional $250 per month payable at the end of
the month. The deposit is refundable at the time you move out,
assuming a clean apartment in good condition. Draw a
monthly cash flow diagram only, assuming
you keep the apartment for 12 full months.