1.Suppose a country with a current population of 80 million is expected to experience a population growth...
Question:
1.Suppose a country with a current population of 80 million is expected to experience a population growth rate of 0.06 per year for the next 50 years. Assuming continuous compounding, what is the expected size of the population 50 years from now? Please round off your answers to the nearest million (i.e. if your answer is 109.9 million, then type 110).
2.Assume the total cost of a university education will be $200,000 when your child enters university in 8 years. You presently have $165,000 to invest. What annual rate of interest (APR) must you earn, if the interest is compounded continuously? Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign in your answer.
3.An investment promises to pay you $1,000 per year forever with the first payment in 7 years. If alternative investments of similar risk earn 10% per year, determine the maximum you would be willing to pay for this investment
Corporate Finance A Focused Approach
ISBN: 978-1305637108
6th edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham