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1-An investment will pay $ 100 at the end of each of the next 3 years, $ 200 at the end of Year 4, $ 300 at the end of Year 5, and $ 500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value?

Find the following values. Compounding/ discounting occurs annually. a. An initial $ 500 compounded for 10 years at 6% b. An initial $ 500 compounded for 10 years at 12% c. The present value of $ 500 due in 10 years at 6%

Details: Townscape has been on a five year run of consistent growth. The economy has since begun a downturn and the city government must now decide whether to place a hold on future growth. As a member of the city council you have been asked to consider the pros and cons of new development and

Ms. Ima Rich has just passed away. In her will she has left your not-for-profit organization $2 million dollars to be paid out in annual installments of $100,000 a year for the next twenty years. The executive director of your organization wants the money now to purchase a new headquarters. You have been charged with

1. Find the present value of a payment stream of $100 per year for the first fifteen years and $200 per year for the next five years, given a 12% discount rate. 2.A company stock was priced at $15 per share two years ago. The stock sold for $13 last year and now it sells

Assume today is August 1, 2006. Natasha Kingery is 30 years old and has a BAS degree in computer science. She is currently employed as a Tier 2 field service representative for Telephony Corporation located in Seattle Washington, and earns $38,000 a year that she anticipates will grow at 3% per year. Natasha hopes to

1.16 At an interest rate of 8% per year, $10,000 today is equivalent to how much (a) 1 year from now and (b) 1 year ago? 1.20 Certain certificates of deposits accumulate interest at 10% per year simple interest. if a company invests $240,000 now in these certificates for the purchase of a new machine

You think that in 15 years it will cost $75,000 to give your child a college education. Will you have enough if you take $25,000 today and invest it for the next 15 years at 8 percent? If you start from scratch, how much will you have to save each year to have $75,000 in

Bill Shaffer wishes to have $200,000 in a retirement fund 20 years from now. He can create the retirement fund by making a single lump sum deposit today. If upon retirement in 20 years Bill plans to invest the $200,000 in a fund that earns 11 percent, what is the maximum annual withdrawal he can

A-Future Value: What is the future value in three years of $1000 invested in an account with a stated annual interest rate of 8 percent, a. Compound annually? b. Compound Semiannual? c. Compound monthly? d. Compound Continuously? e. Why does the future value increase as the compounding period shortens? B-Stock Valuation: Suppose you know that