Question
How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%? a. $578.12 O b. $500.26 O c.
How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%? a. $578.12 O b. $500.26 O c. O d. $503.76 e. $405.62 $537.78 You want to quit your job and return to school for an MBA degree 3 years from now, and you plan to save $5,000 per year, beginning immediately. You will make 3 deposits in an account that pays 5.9% interest. Under these assumptions, how much will you have 3 years from today? O a. $15,902.40 O b. $16,840.65 O c. $10,902.40 O d. $21,840.65 O e. $15,885.00 You just inherited some money, and a broker offers to sell you an annuity that pays $10,200 at the end of each year for 20 years. You could earn 4.7% on your money in other investments with equal risk. What is the most you should pay for the annuity? O a. $130,411.15 O b. $126,340.47 O c. $136,540.47 O d. $213,588.00 O e. $134,299.09
Step by Step Solution
3.33 Rating (129 Votes )
There are 3 Steps involved in it
Step: 1
The detailed answer for the above question is provided below SOLUTION To calculate the present value ...Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started