Question: Present value. A promissory note will pay $65,000 at maturity 9 years from now. How much should you be willing to pay for the

Present value. A promissory note will pay $65,000 at maturity 9 years from now. How much should you be willing to pay for the note now if money is worth 4.5% 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!

An experiment was conducted to determine whether giving candy to dining parties resulted in greater tips. The mean tip percentages and standard deviations are given in the accompanying table along...

An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 10% annual coupon. Bond L matures in 10 years, while Bond S matures in 1 year. What will the value of the Bond L...

1.Bond X is noncallable and has 20 years to maturity, a 10% annual coupon, and a $1,000 par value. Your required return on Bond X is 12%; if you buy it, you plan to hold it for 5 years. You (and the...

Mr. and Mrs. Thomas are buying a new house for $330,000. Compare the two loan offers by finding the monthly payments for each and calculating the total amount paid for each. Loan Options Down Payment...

Carl Hubbell owns 6,001 shares of the Piston Corp. There are 12 seats on the company board of directors, and the company has a total of 78,000 shares of stock outstanding. The Piston Corp. utilizes...

Can risk be eliminated from projects? Should management try to eliminate it?

What can clinical psychologists (or students in training) do to enhance their cultural competence with members of this culture?

Mels Bowling Alleys adjusted trial balance as of December 31, 2014 is presented below. Requirements 1. Prepare the closing entries for Mels Bowling Alley. 2. Prepare a post-closing trial balance. 3....

Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 31 percent for the next three years, with the growth rate falling off to a constant 7.6 percent thereafter. If the...

The following data relate to the operations of Soper Company, a wholesale distributor of consumer goods as of March 31: Cash Accounts receivable Inventory Building and equipment, net Accounts payable...

In the "Short-Answer Questions" section found in Chapter 16, answer question 1. In your explanation, describe in detail why litigation may not be as cost efficient as other methods of dispute...

Briefly describe 3 key lessons learned from reading Simon Sinek's book "Start with Why"?

3. Briefly explain the following step toward ethical behaviour: Carrying out one's decision a. Weakness of will b. Strength of will C. Locus of control d. Willingness to obey authority

Queens black is a popular input with an annual demand of 5 0 0 0 0 gallons, ordering cost of$ 5 0 per order, and holding cost of $ 5 per unit per year; the econmoic orer quantity is 1 , 0 0 0 . Hence...

Project management has been around ever since the time of the pyramids.However, today many organizations and industries are still struggling to understand and apply good project management to their...

CA2-2 (Conceptual FrameworkGeneral) The Financial Accounting Standards Board (FASB) has developed a conceptual framework for financial accounting and reporting. The FASB has issued eight Statements...

What is the back work ratio? What are typical back work ratio values for gas-turbine engines?

=+ Why do so many control conditions in writing exercises lead to beneficial outcomes? In other words,

=+2. What are the mechanisms by which the relationship between PA and health operates, and how might the physiological processes associated with PA correspond to different outcomes?

=+3. How can educators enhance the training of students in the area of spirituality?