Intro Google has made an offer to buy your start-up. As long as you keep working...

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Intro Google has made an offer to buy your start-up. As long as you keep working for the firm, Google promises to pay you the following amounts over the next 5 years, at the end of each year. Year Payment 1 500,000 2 600,000 700,000 700,000 5 750,000 You think that your company is worth $200,000 more than the total offered value. You also want to receive $1,000,000 right now and prefer a monthly payment to an annual payment for the remaining amount, with the first monthly payment occuring one month from now and the last one 5 years from now. The annual interest rate is 8% (EAR). Part 1 BAttempt 1/10 for 10 pts. If Google agrees to your terms, how much can you expect per month? 0+ decimals Submit Intro Google has made an offer to buy your start-up. As long as you keep working for the firm, Google promises to pay you the following amounts over the next 5 years, at the end of each year. Year Payment 1 500,000 2 600,000 700,000 700,000 5 750,000 You think that your company is worth $200,000 more than the total offered value. You also want to receive $1,000,000 right now and prefer a monthly payment to an annual payment for the remaining amount, with the first monthly payment occuring one month from now and the last one 5 years from now. The annual interest rate is 8% (EAR). Part 1 BAttempt 1/10 for 10 pts. If Google agrees to your terms, how much can you expect per month? 0+ decimals Submit

Answer rating: 100% (QA)

To calculate the monthly payment we need to calculate the present value of the remaining amount at a... View the full answer