• 100% Satisfaction Guarantee
Linda_us, Finance, Accounts & Homework Tutor
Category: Homework
Satisfied Customers: 7291
Experience:  Post Graduate Diploma in Management (MBA)
19873544
Linda_us is online now

# You will receive \$5,000 three years from now. The discount

You will receive \$5,000 three years from now. The discount rate is 8 percent.
a. What is the value of your investment two years from now? Multiply
\$5,000 _ .926 (one year’s discount rate at 8 percent).

b. What is the value of your investment one year from now? Multiply your
answer to part a by .926 (one year’s discount rate at 8 percent).

by .926 (one year’s discount rate at 8 percent).

d. Confirm that your answer to part c is correct by going to Appendix B (present
value of \$1) for n _ 3 and i _ 8 percent. Multiply this tabular value by
\$5,000 and compare your answer to part c. There may be a slight difference
due to rounding

If you invest \$9,000 today, how much will you have:
a. In 2 years at 9 percent?
b. In 7 years at 12 percent?
c. In 25 years at 14 percent?
d. In 25 years at 14 percent (compounded semiannually)?

Your uncle offers you a choice of \$30,000 in 50 years or \$95 today. If money is
discounted at 12 percent, which should you choose?

You need to spend \$3 to view this post. Add Funds to your account and buy credits.
Customer: replied 6 years ago.

Linda,

Your response was fast and thank you but did you do this for someone else. The reason I ask I am concerned with turning in the assignment and getting caught for plagarism. Please advise ,thanks!

Its true I did this for someone else but I can redo if you want but the best thing would be you can use this as a guide (Answer Key) and you can reformat and reword it.