It is said that a lump-sum amount of $50,000 at the end of five years is equivalent
Question:
It is said that a lump-sum amount of $50,000 at the end of five years is equivalent to an equal‐payment series of $5,000 per year for 10 years, where the first payment occurs at the end of year 1. What earning interest is assumed in this calculation?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 82% (17 reviews)
P 30723PF1...View the full answer
Answered By
Rajat Gupta
used to take tution classes from my school time.
Conducted special topic claases during my graduation to help the students pass their exams.
Currently, teaching and conducting online claases during my post- graduation too.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
McNally Corporation reported various transactions in 20X2: a. Equipment with an original cost of $ 65,000 and accumulated depreciation of $ 52,000 was deemed unusable and was sold for $ 500 scrap...
-
You have a choice between receiving (1) A $50,000 payment today, (2) A $7,500 annuity for the next 10 years and a lump-sum amount of $20,000 at the end of the10th year. If money is worth 10%, which...
-
An engineer has been offered an investment opportunity that will require a cash outlay of $40,000 now for a cash inflow of $3500 for each year of investment. However, she must state now the number of...
-
In the Young's double slit experiment, interference fringes are formed using Na-light of 589 nm and 589.5 nm. Obtain the region on the screen where the fringe pattern will disappear. You may assume...
-
In Example 6-13 (Connected Blocks), suppose m1 and m2 are both increased by a factor of 2. (a) Does the acceleration of the blocks increase, decrease, or stay the same? (b) Does the tension in the...
-
Show how you would use an acid chloride as an intermediate to synthesize (a) N-phenylbenzamide (PhCONHPh) from benzoic acid and aniline. (b) Phenyl propionate (CH3CH2COOPh) from propionic acid and...
-
The following table summarizes visits to emergency departments at four hospitals in Arizona. People may leave without being seen by a physician, and those visits are denoted as LWBS. The remaining...
-
A water wave traveling in a straight line on a lake is described by the equation Where y is the displacement perpendicular to the undisturbed surface of the lake? (a) How much time does it take for...
-
Using Z-transform, find the total response of an LTID system specified by the linear difference equation: yn+2] 3yn+1]+2y[n] = 3x[n+2] 2x [n+1], if the initial conditions are y[-1] = 2, y[-2]=1, and...
-
Apply the value chain model to a video game developer, such as Electronic Arts (www.EA.com). What is its competitive strategy? Describe the tasks Electronic Arts must accomplish for each of the...
-
At what rate of interest compounded annually will an investment double in five years? Find the answers by using (1) the exact formula and (2) the Rule of 72.
-
Consider the following cash flow series at varying interest rates. What is the equivalent present worth of the cash flow series? $1,500 $1,000 $1,000 $1,000 5% 10% 6% 8% 3 VP = ? 4.
-
Use a graphing utility to graph the polar equation r = cos 5 + n cos for 0 < and for the integers n = - 5 to n = 5. What values of n produce the "heart" portion of the curve? What values of n...
-
Two automobiles are heading towards the same intersection. Car A is traveling east (taken to be the +x direction) at 23m/s while car B is traveling south (taken to be the -y direction) at 17m/s. What...
-
Find the direction of book's velocity, just before the book reaches the floor. Express your answer in degrees.
-
You toss a tennis ball straight upward. At the moment it leaves your hand it is at a height of 1.5 m above the ground, and it is moving at a speed of 7.6 m/s. (a) How much time does it take for the...
-
The rod below has equal amounts of positive and negative charge on each half. What is the direciton of the electric field at point P? Up and to the right Down To the left To the right Up
-
Two objects of the same mass travel in the same direction along a horizontal surface. Object X has a speed of 5 m/s and object Y has a speed of 2 m/s, as shown in the figure. After a period of time,...
-
Verify Theorem 3.32 by finding the matrix of S º T (a) By direct substitution (b) By matrix multiplication of [S][T]. 2 X + X1 1 X, + , . S y2 2 |T + . X, + -.
-
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19 year-old nanny $125 per week for 48 weeks during the current year. a. What is the employers portion of...
-
Recent technology has made possible a computerized vending machine that can grind coffee beans and brew fresh coffee on demand. The computer also makes possible such complicated functions as changing...
-
Consider two investments A and B with the sequences of cash flows given in Table P7.37. TABLE P7.37 (a) Compute the IRR for each investment. (b) At MARR = 15%, determine the acceptability of each...
-
With $10,000 available, you have two investment options. The first is to buy a certificate of deposit from a bank at an interest rate of 9% annually for five years. The second choice is to purchase a...
-
How does the central bank imply Bank Rate fluctuations as the monetary policy mechanism? Explain.
-
1. Calculate the NPV and Profitability Index for each of the following projects, assuming the cost of capital is 7%. YEAR iPad Pro iPhone 9 I 0 -36,000 -11,500 1 18,000 0 2 12,600 7,500 3 4,500 4,000...
-
State the dividend irrelevance proposition. What are the assumptions behind this proposition? Explain why this proposition does not hold in the real world. (20 marks)
Study smarter with the SolutionInn App