Calculate the present value of $100 that you will receive 3 years from now. Produce answers for
Fantastic news! We've Found the answer you've been seeking!
Question:
- Calculate the present value of $100 that you will receive 3 years from now. Produce answers for discount rates which range from 0% - 30% in 2% increments. Graph the present value (y) vs discount rate (x) for all discount rates.
- Your parents began saving money for college on your 10th birthday. They make deposits of $4,000 every year, with the final deposit being on your 17th birthday. For four years, starting on your 18th birthday, they will withdraw $20,000 for tuition. If they earn 8%, will you have enough to cover all four years of tuition? Detail the balance for each year.
- You are 30 years old today and are considering an MBA. You have just received your annual salary of $50,000 and expect it to grow by 3% per year. If you get an MBA, your salary is estimated to start at $80,000 per year and grow by 4%. The MBA program is a 2 year program at a cost of $30,000 per year (you’ll need to quit your job to enter the program). If the interest rate is 8%, and you plan to retire at 65, is the MBA worth it? Detail the cash flows for each year, in both scenarios.
Related Book For
Advertising & IMC Principles & Practice
ISBN: 978-0132163644
9th Edition
Authors: Sandra Moriarty, Nancy Mitchell, William Wells
Posted Date: