Question: Question 3 How much would $10,000 due in 50 years be worth today if the discount rate were 7.5%? a. S217.80 b. $266.20 c. $204.36

Question 3 How much would $10,000 due in 50 years be worth today if the discount rate were 7.5%? a. S217.80 b. $266.20 c. $204.36 d. $268.89 e. $285.02 Moving to another question will save this response

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 Finance Questions!

The Amigito Insurace Agency (continued from chapter 8) First thing Monday morning. Jason arrived at Perdido's agency. Luckily, his client load was very light, so he I was able to take his first...

How much would $10,000 due in 50 years be worth today if the discount rate were 7.5%? a $285.02 b. $266.20 c. S204.36 d. $217.80 e $268.89

rue/False Indicate whether the statement is true or false. ____1.If the discount (or interest) rate is positive, the present value of an expected series of payments will always exceed the future...

A quiz for MBA finance 570 True/False Indicate whether the statement is true or false. ____ 1. The major advantage of a general partnership or a corporation as a form of business organization is the...

please answer with steps 11- Your bank account pays a 6% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT? a. The periodic rate of interest...

- Suppose a U.S. government bond promises to pay $1,000 five years from now. If the going interest rate on 5-year government bonds is 5.5%, how much is the bond worth today? a. $765.13 b. $803.39 c....

1. You want to buy a car, and a local bank will lend you $35,000. The loan would be fully amortized over 3 years (36 months), and the nominal interest rate would be 15%, with interest paid monthly....

1. The factor that affects interest rates is: a. production opportunity cost of cash b. time preference for consumption c. inflation d. risk e. all of the above 2. Suppose that you are promised $100...

1. Sue now has $410. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding? Suppose you have $1,375 and plan to purchase a 5-year certificate of deposit (CD)...

Aa A E 21 AaBbcode Abdte AaBbCcDc ABCD Heading 1 Heading 2 AaBb Normal No Spacing 1. Sue now has $410. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?...

A person's body is in the water for as much as 95%. Calculate the force exerted by the person whose mass is 40 kg when he uses his hands to float! Assume that the average density of the human body is...

Born between 1980 and 1990, Generation Next is engaged with technology, and the vast majority is dependent upon it. Suppose that in a survey of 500 female and 500 male students in Generation Next,...

What are some factors that affect automobile insurance premiums? Please list at least 4 and write in complete sentences

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...