Hansi is promised to receive $89 in 9 years. Hansi, being profligate, prefers to spend this promised amount of money today. What is the equivalent present value of the settlement if the interest rate is 6.00%?
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- İhsan wants to pay the 50,000 TL loan he received from the bank in annual installments of 2,500 TL at the end of each year, and if any balance payment remains, he will make the remaining balance after the last installment. If the annual interest rate is 5%, Mr. İhsan, how many payments and what will be the final balance payment.Linda expects to receive P35,569.22 , 9 years from now. How much should she invests for three consecutive years (annually) starting THIS YEAR if the interest rate is 0.250? Use knowledge about ANNUITIES in solving thisBill Padley expects to invest $10,000 for 25 years, after which he wants to receive $108,347. What rate of interest must Padley earn?
- Jane has been offered a choice between a lump sum payment of $100,000 today or an annuity thatpays $8,000 per year for 20 years, starting one year from today. If the interest rate is 6% per year,which option should she choose?Tobi owns a perpetuity that will pay $1,000 a year, starting one year from now. He offers to sell you all of the remaining payments after the first 25 payments have been paid. What price should you offer him for payments 26 onward if you desire a rate of return of 7.5 percent?Paul lends R10 000 to his friend Steven for one year. They agree that Steven would pay the R10 000 back with 5% interest at the end of the year. If the inflation rate is 6% at the end of the year, which of the following would be true for the real value of the amount that Steven pays back ?
- Tobi owns a perpetuity that will pay $1,500 a year, starting on year from now. He offers to sell you all of the remaining payments after the next 25 payments have been paid. what price should you offer him for payments 26 onward if you desire a rate of return of 8%? What does your offer price illustrate about the value of perpetuites?Moon purchases a lot for $300,000. Moon agrees to pay $25,000 dollars at the end of each year. If the interest rate is 4% compounded annually, how many full payments must be made, and what will be the size of the concluding payment one year after the last full payment? How to enter into TVM Solver??Maria Addai has been offered a future payment of $750 2 years from now. If she can earn 6.5%, compounded annually, on her investment, what should she pay for this investment today?
- Sardor has been offered an investment that will pay him $500 three years from today. If his opportunity cost is 7% compounded annually, what value should he place on this opportunity today?Angel is being promised by Peter to receive P30,000 every four months for two years. The interest rate is 12% per annum. How much is the value of the amount of money promised by Peter today?Franklin owes the following amounts to the same person: $16,000 due today, $11,500 due in 1¼ years, $17,000 due in 2¾ years, and $15,000 due in 4¼ years. He wants to make a single payment of $56,500 instead. Using an interest rate of 8% compounded quarterly, when should this payment be made?
