Your friend offers to you to be a part of his partnership business. If you agree...
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Your friend offers to you to be a part of his partnership business. If you agree to this, you will receive $6,000 at the beginning of each year, for the next 8 years. Your friend's partnership generates a 9% annual return. If instead you wait 8 years with receiving the money, and receive an equivalent amount of money at the end of year 8 in one large payment, how much would it need to be? In the problem above I am working with [Select] (pick from the list below) 1 a single cash flow (like in Chapter 5) 2 multiple different cash flows 3 an annuity 4 a perpetuity In the problem above I need to calculate the [Select] $ PROFIT ✓ (pick from the list below) 1 Future Value 2 Present Value 3 number of time periods, or number of cash flows 4 interest rate 5 dollar amount of the repeating cash flow (Increase decimal places for any intermediate calculations, from the default 2 to, for example, 6 or even higher. The more the better! Only round your final answer to TWO decimal places: for example, 10,000.23.) Your friend offers to you to be a part of his partnership business. If you agree to this, you will receive $6,000 at the beginning of each year, for the next 8 years. Your friend's partnership generates a 9% annual return. If instead you wait 8 years with receiving the money, and receive an equivalent amount of money at the end of year 8 in one large payment, how much would it need to be? In the problem above I am working with [Select] (pick from the list below) 1 a single cash flow (like in Chapter 5) 2 multiple different cash flows 3 an annuity 4 a perpetuity In the problem above I need to calculate the [Select] $ PROFIT ✓ (pick from the list below) 1 Future Value 2 Present Value 3 number of time periods, or number of cash flows 4 interest rate 5 dollar amount of the repeating cash flow (Increase decimal places for any intermediate calculations, from the default 2 to, for example, 6 or even higher. The more the better! Only round your final answer to TWO decimal places: for example, 10,000.23.)
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The situation described in the question is that of receiving an annuity specifically an ordinary ann... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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