Question: 1 Time value and discount rates You just won a lottery that promises to pay you $1,000,000 cactly 10 years from today. Because the $1.000.000
1 Time value and discount rates You just won a lottery that promises to pay you $1,000,000 cactly 10 years from today. Because the $1.000.000 payment is anteed by the state in which you live opportunities to sell the claim today an immediate single cash payment What is the least you will sell your claim for if you can car the following of retum on similar risk investments during the 10-year period? (2) 9 (3) 12% 2 Calculating deposit needed you put $10,000 in an account earning 5%. After 3 years, you make another deposit into the same account. Four years later that is, years after your original $10,000 deposit the account balance is $20,000. What was the amount of the depout at the end of year 3) Future value of an annuity For each come in the accompanying table answer the questions that follow G Amount of an 52.500 20 c D 11.00 000 2. Calculate the future value of the mining that it is As ordinary annuity You need 528,974 at the end of 10 years, and your only investment outlet is an 8 percent long-term certificate of deposit (compounded armly. With the tificate of deposit, you make an initial imeement at the beginning of the first year a What single payment could be made at the beginning of the first year to achieve this objective What amount could you pay the end of each year ammually for 10 years to achieve this same objective? 5 Sterling Optical and Royal Optical both male sleus frames and each is able 10 penerate camins hefur interest and usef512.000 The separate capital structures for Storting and Royal are own here: 50.000121 Dete Commons You Commons $1.100.000 Total 38.000 Como Shame $ 220.000 0.000 $1.100.000 176.000 Compul carino per un forums. Ata pentsate In purta shullune porten the meanswer for both companies cam ing per Share Amina Motor 22 for each company, what would seck icebe 1 Time value and discount rates You just won a lottery that promises to pay you $1,000,000 cactly 10 years from today. Because the $1.000.000 payment is anteed by the state in which you live opportunities to sell the claim today an immediate single cash payment What is the least you will sell your claim for if you can car the following of retum on similar risk investments during the 10-year period? (2) 9 (3) 12% 2 Calculating deposit needed you put $10,000 in an account earning 5%. After 3 years, you make another deposit into the same account. Four years later that is, years after your original $10,000 deposit the account balance is $20,000. What was the amount of the depout at the end of year 3) Future value of an annuity For each come in the accompanying table answer the questions that follow G Amount of an 52.500 20 c D 11.00 000 2. Calculate the future value of the mining that it is As ordinary annuity You need 528,974 at the end of 10 years, and your only investment outlet is an 8 percent long-term certificate of deposit (compounded armly. With the tificate of deposit, you make an initial imeement at the beginning of the first year a What single payment could be made at the beginning of the first year to achieve this objective What amount could you pay the end of each year ammually for 10 years to achieve this same objective? 5 Sterling Optical and Royal Optical both male sleus frames and each is able 10 penerate camins hefur interest and usef512.000 The separate capital structures for Storting and Royal are own here: 50.000121 Dete Commons You Commons $1.100.000 Total 38.000 Como Shame $ 220.000 0.000 $1.100.000 176.000 Compul carino per un forums. Ata pentsate In purta shullune porten the meanswer for both companies cam ing per Share Amina Motor 22 for each company, what would seck icebe
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