8) A 4-year contract pays you $100 today and also for the following 4 years (essentially,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
8) A 4-year contract pays you $100 today and also for the following 4 years (essentially, there are 5 payments). The interest rate is 3% per year. What is the present value of this contract? (A) $371.71 (B) $382.86 (C) $457.97 (D) $471.71 8) A 4-year contract pays you $100 today and also for the following 4 years (essentially, there are 5 payments). The interest rate is 3% per year. What is the present value of this contract? (A) $371.71 (B) $382.86 (C) $457.97 (D) $471.71
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Abardeen Corporation borrowed $90,000 from the bank on October 1, 2016. The note had an 8percent annual rate of interest and matured on March 31, 2017. Interest and principal were paid in cash on the...
-
In Brazil, the introduction of Viagra has contributed to a sharp increase in the number of elderly men who marry young women. As is the case in the United States, the Brazilian social security system...
-
Ina is depositing money into a savings account that pays 1.4% interest compounded quarterly. She wants to determine how long it will take for $2,000 to grow to $2,400. Use the steps below to find the...
-
Debit-to-Equity Ratio Calculate the company's 2019 debt-to-equity ratio and compare the result to the industry average. Use the following financial data for Brenner Instruments Sales revenue.. Cost...
-
The cash register tape for Kelly Kapoor Industries reported sales of $6,891.50. Record the journal entry that would be necessary for each of the following situations. (a) Cash to be accounted for...
-
Suppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A through D , with average betas for each division of 0 . 9 , 1 . 1 , 1 . 3...
-
Read factual scenarios as set forth in each section. Compose an answer facilitating the law and all facts supplied. Do not forget to include your conclusion. BACKGROUND FACTS: Assume a jurisdiction...
-
What are the possible design issues for the temptation EBT, when linked to the design phase?
-
List a couple of advantages of using the stable analysis pattern for temptation.
-
Describe how the developed temptation analysis pattern would be stable over time.
-
List two scenarios, which will not be covered by the temptation analysis pattern.
-
List some of the testing patterns that can be applied for testing the temptation stable analysis pattern.
-
A library has a fined charge for the first 3 days and an additional charge for each day thereafter Avanshi paid Rs. 27 for a book kept for seven days if fined charges are Rs. x and thereafter charges...
-
The Place-Plus real estate development firm in Problem 24 is dissatisfied with the economists estimate of the probabilities of future interest rate movement, so it is considering having a financial...
-
The 2014 financial statements of LVMH Moet Hennessey-Louis Vuitton S.A.LVMH is a Paris-based holding company and one of the worlds largest and best-known luxury goods companies. As a member-nation of...
-
Assume that an income statement contains each of the three sections listed below. Which will be the last section presented in the income statement? a. Gross profit b. Income from continuing...
-
When constructing a common-sized income statement, all amounts are expressed as a percentage of: a. net income. b. gross profit. c. net sales. d. income from operations.
Study smarter with the SolutionInn App