Question: Present value. A promissory note will pay $ 30, 000at maturity 5years from now. How much should you be willing to pay for the note

Present value. A promissory note will pay $ 30, 000at maturity 5years from now. How much should you be willing to pay for the note now if money is worth 6%compounded continuously?

Round to the nearest dollar

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

Last Sale Net Bid Ask Open Int Puts Last Sale Net bid Ask Vol Open Int 16Aug 155.00(1619H155-E) 6.45 0.75 6.95 7.25 9 16Aug 155.00(1619T155-E) 1.18 (0.75) 1.17 1.25 61 4505 16Aug 166.00(1619H160-E)...

The Darwin Company is in dire need of money to pay its maturing obligations and decided to use its accounts receivable to augment its cash requirements. On January 1, Darwin Company assigned P100,000...

One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its post-closing trial balance prepared on December 31, at the end of its first year of operations, were: The...

1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...

Coral Divers Resort Jonathon Greywell locked the door on the equipment shed and began walking back along the boat dock to his office. He was thinking about the matters that had weighed heavily on his...

The Lending Club Corp. (LC) is the worlds largest P2P lending platform. The company claims that $22 billion in loans had been originated through its platform up to January 15, 2017, of which about $2...

I accidentally left one screenshot blank, however, just note that the one BLANK is SCREENSHOT NINE (9). Regardless of this, most of the screenshots below do not include multiple parts, although note...

q7 An investor bought stock for $40000. Fourteen years later, the stock was sold for $50000. If interest is compounded continuously: what annual nominal rate of interest did the original $40000...

Homework 3.1 question 1 Present value. A promissory note will pay $65,000 at maturity 10 years from now. How much should you be willing to pay for he note now if money is worth 5.25% compounded...

Maguire Company obtains 100 percent control over Williams Company in 2010. Several years after the takeover, consolidated financial statements are being produced. For each of the following accounts,...

Overview and Requirements AVL Trees provide a balanced binary tree for efficient storage,retreival and deletion of data. We learnt about implementing AVLTrees in the class. We will expand on the...

Question 610.5 pts Even as late as the years following World War II, people in southern Italy still died from: Group of answer choices tuberculosis syphilis malaria influenza smallpox Flag question:...

Oust the Turtle Company has the following balances on December 31, 2020: Cash on hand 4,500.00 Cash in bank A 33,000.00 Cash in bank X 50,000.00 Cash in bank C 822,999.72 Cash on hand includes $ 3....