What is the present value of receiving $1,500 twenty-five years from now if the nominal interest rate

Question:

What is the present value of receiving $1,500 twenty-five years from now if the nominal interest rate is 10 percent, discounted continuously?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

See More Books

Question Posted: Jul 17, 2012 02:18 AM

See More Questions

What is the present value of twenty $500 cash flows that occur at the end of each year for the next twenty years at a periodic interest rate of 7.5% compounded annually? The first cash flow occurs a...
What is the present value of five $800 cash flows that occur at the end of each year for the next five years at a periodic interest rate of 8% compounded annually? The first cash flow occurs a year...
What is the present value of the following uneven cash flow stream? The appropriate interest rate is 10%, compoundedannually. 1 4 years 300 100 300 -50 2.
Northland Corporation is a small information-systems consulting firm that specializes in helping companies implement standard sales-management software. The market for Northalndss services is very...
Drawing on your background in accounting, can you think of any accounting differences that might make it difficult to compare the relative performance of different firms?
Refer to the Real World Case on quantifying IT risks and value in the chapter. Why do you think that the "IT as a cost" mindset is so prevalent among organizations? Relate your answer to the...
What is a contra-asset? Give an example of one.
According to the same NCAA data, the means and standard deviations of eligibility and retention rates (based on a 1,000-point scale) for the 2010-2011 academic year follow, along with the scores for...
Part 1 A free - standing ambulatory care clinic averages $ 1 2 0 in charges per patient. Variable costs are approximately $ 2 0 per patient, and fixed costs are about 1 . 8 million per year. Using...
LIFO/FIFO/Average Cost under Periodic and Perpetual Inventory Systems Spelling Company had the following transactions in connection with their inventory account during the month of August: PURCHASES...
What is the future value of $1,000 invested for 10 years at a nominal interest rate of 10 percent compounded continuously? How much higher is this value than the value obtained with annual...
The following accounts, with the balances indicated, appear in the ledger of Yosemite Outdoor Equipment Company on December 1 of the current year: The following transactions relating to payroll,...
Should all IT workers be either licensed or certified? Why or why not?
The academic advisor to the football team of Rah Rah University is interested in the mean number of hours that players spend studying during the football season. Of the 100 members of the football...
You have been hired as an economist for the Federal Reserve Bank of New York. Your job is to forecast future interest rates. Summarize the theory of the interest rate, and formulate a mathematical...
The Mom and Pop Grocery Store has 115 employees. In a random sample of 30 of these employees, the mean number of days that an employee was late each year was 14 days, and the sample standard...
The citizens for Fair Taxes are interested in the average property tax paid by the 2,000 residents of their city. A random sample of 50 of these households had a mean property tax of $1,472 with a...
A regression analysis has two independent variables (x 1 and x 2 ). (a) What does it mean if x 1 and x 2 are independent of each other? In that case, what is the correlation between them? (b) Is...
All the cows in a certain herd are white-faced. The probability that a white-faced calf will be born by mating with a certain bull is 0.9 . Suppose four cows are bred to the same bull. Find the...
Simplify the expression. Assume that all variables are positive. 23VI1 2 V44 8
Calculate the mass of solid NaCl that must be added to 1.50 L of a 0.100 M AgNO 3 solution to precipitate all the Ag + ions in the form of AgCl.
Four economic classifications of mergers are (1) horizontal, (2) vertical, (3) conglomerate, and (4) congeneric. Explain the significance of these terms in merger analysis with regard to (a) the...
Four economic classifications of mergers are (1) horizontal, (2) vertical, (3) conglomerate, and (4) congeneric. Explain the significance of these terms in merger analysis with regard to (a) the...
Firm A wants to acquire Firm B. Firm Bs management agrees that the merger is a good idea. Might a tender offer be used?
What percentage of the American opportunity tax credit may be refundable?
You want to buy a house. You have $50,000 saved for the down payment and can pay $2,000 per month on the mortgage. The 30-year mortgage interest rate is 9% per year (equal to 0.75% per month). What...
Compute the Social Security and Medicare for Paul, Alex, and Andrea. The rates are 6 . 2 % for Social Security and 1 . 4 5 % for Medicare. Assume the Social Security limit is $ 1 4 2 , 8 0 0 and the...

What is the present value of receiving $1,500 twenty-five years from now if the nominal interest rate

Question:

Step by Step Answer:

Future Value 1500 ...View the full answer

Contemporary Financial Management

Students also viewed these Corporate Finance questions