1. Determine the present value of the following perpetuity with an annual amount of $40,000.00 and a...
Question:
1. Determine the present value of the following perpetuity with an annual amount of $40,000.00 and a discount rate of 20%:
2. Determine the appropriate present value interest factor of the following perpetuity with annual amount $40,000.00 and discount rate of 20%:
3. David Trovato wants to raise $15,000.00 at the end of 5 years, making identical annual deposits at the end of each year for the next five years. If Mr. Trovato can earn 8% on his investments. How much should you deposit at the end of each year?
4. You have $2,000 to invest today at 10% interest compounded annually. How much will you have accumulated at the end of 5 years?
5. What is the present value of $5,000 received at the end of four years if the interest rate is 10%?
6. A NY State Savings bonus can be converted to $200 at 6 years of maturity from purchase. The rate that the bonus can provide is 8%. What sales price should the state of NY put on the bonus?
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus