What is the present value of $10,000 received a. 12 years from today when the interest rate

Question:

What is the present value of $10,000 received

a. 12 years from today when the interest rate is 4% per year?

b. 20 years from today when the interest rate is 8% per year?

c. 6 years from today when the interest rate is 2% per year?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

See More Books

Question Posted: Jan 14, 2012 02:20 AM

See More Questions

Suppose you are going to receive $20,000 per year for 7 years. The appropriate interest rate is 7 percent. 1. suppose you plan to invest the payments for 7 years. What is the future value at the end...
What is the present value of a $100 perpetuity if the interest rate is 7%? If interest rates doubled to 14%, what would its present value be?
What is the present value of $100 to be received in 3 years if the appropriate interest rate is 10%?
Q1- An engineering student is trying to create a new drivetrain system for his bike, consisting of a pully system. Pully A is connected to pully B by a non-slip belt and pully B is rigidly attached...
Multiple models are often used in supporting business decision making. Why might this be the case and what factors may dictate the need for multiple models?
Problem 14-11 (Algo) (LO 14-4, 14-5, 14-6) A partnership begins its first year of operations with the following capital balances: Allegan, Capital Berrien, Capital Kent, Capital $ 72,000 62,000...
In the United States, is there a gender gap in political beliefs? That is, do women and men tend to differ in their political thinking and voting behavior? The table taken from the 2018 GSS relates...
1. Using Microsoft Excel, draw a graph illustrating the supply and demand in this market. 2. What is the equilibrium Price and Quantity in the market? 3. Now suppose the government imposes a special...
5. Explain the differences and similarities of the USMCA proof of Origin and the CHILE FTA proof of origin (Example: Fields of Certificate of Origin, official languages, who can sign the certificate...
Slater & Gordon (S&G) became the worlds first listed law firm in 2007. The company is headquartered in Melbourne, where it was founded in 1935, by William Slater and Hugh Gordon....
Calculate the future value of $2000 in a. 5 years at an interest rate of 5% per year. b. 10 years at an interest rate of 5% per year. c. 5 years at an interest rate of 10% per year. d. Why is the...
Your brother has offered to give you either $5000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option is preferable?
Bonds are said to be quoted as a percent of par. What does that mean? What is 1 point worth in the bond market?
Software Associates (SA) is a computer software consulting firm that specializes in designing and implementing integrated marketing database warehousing programs. Humphrey Catalog is a client. In...
Define CSR.
Giza Farms in Cairo, Egypt, has a corporate headquarters staff and three operating divisions: consulting services, chemicals, and agricultural products. Giza is considering allocating 160 million...
Increased global competition has spurred most firms to take a hard look at their costs and become lean and mean. Rochco, a large industrial complex, has seen offshore competition erode its market...
Explain the benefits that ought to be yielded when public investments are used for road construction.
The city of Papagos, Arizona, had a deteriorating bridge in need of repair on a prominent public roadway. The city posted notices seeking proposals for an artistic bridge design and reconstruction....
CRUZ, INC. Comparative Balance Sheets December 31, 2015 CRUZ, INC. Income Statement For Year Ended December 31, 2015 Required Use the indirect method to prepare the cash provided or used from...
(a) Consider the hydrogenation of benzene to cyclohexane, which takes place by the step-by-step addition of two H atoms per step: Draw Lewis structures for the products of the hydrogenation of...
Changes in Target Cash Balances indicate the likely impact of each of the following on a companys target cash balance. Use the letter I to denote an increase and D to denote a decrease. Briefly...
Changes in Target Cash Balances indicate the likely impact of each of the following on a companys target cash balance. Use the letter I to denote an increase and D to denote a decrease. Briefly...
Changes in Target Cash Balances indicate the likely impact of each of the following on a companys target cash balance. Use the letter I to denote an increase and D to denote a decrease. Briefly...
Ned needs to produce more of his two products in order to increase his net income and has found a way to increase the limited resource, machine hours. He has two products, hammers and screwdrivers.....
What effect does an antagonist drug have over the receptors ?
Read this article on the differences and Comparisons between UNIX and LINUX http://www.diffen.com/difference/Linux_vs_Unix, then do some research and post your thoughts on each of the systems. Based...

What is the present value of $10,000 received a. 12 years from today when the interest rate

Question:

Step by Step Answer:

Plan Determine the present values of the different interest ra...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions