Question

Asked Mar 15, 2020

1 views

Present Value

You will require $700 in 5 years. If you earn 5% interst on your funds, how much will you need to invest today in order to reach your savings goal?

Step 1

**The computation is as follows:**

Hence the present value is **$548.47.**

Find answers to questions asked by student like you

Show more Q&A

Q: 1. you want to buy a $250,000 house and you will use a conventional mortgage. What is the minimum do...

A: We will answer the first question since the exact one was not specified. Please submit a new questio...

Q: [EXCEL] Constant growth: Moriband Corp. paid a dividend of $2.15 yesterday. The company's dividend i...

A: DIVIDEND =2.15 GROWTH RATE = 5% REQUIRED RETURN = 15% H I 11 DIVIDEND CUURENT 2.15 12 DIVID...

Q: Calculate the gross earning for an apple picker based on the following differential pay scale: (Roun...

A: In differential pay scale we need to calculate the gross earnings for the first 1000 apples at a rat...

Q: Your friend from Netherlands is planning to visit you in the United States. You estimate the cost of...

A: Solution:

Q: Based on current dividend yields and expected growth rates, the expected rates of return on stocks A...

A: Given that;For stock A:Expected return is 11%Standard deviation is 10% Beta is 0.8

Q: Corp stock expected return of 12.25, Beta 1.25, risk free market is 5%. What is the market risk prem...

A: Expected return = 12.25% Beta = 1.25 Risk free rate = 5% Using CAPM formula: Expcected return = Risk...

Q: A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two...

A: a) The computation of break-even point is as follows: Hence the break even point for alternative A ...

Q: Do risk influence people to go for insurance? What is the relationship between risk and insurance?

A: Yes, risk influences people to go for insurance. Several kinds of risks influence a person to get in...

Q: What is the breakeven point of a project with the following cash flows? Answers: 3 ...

A: Therefore, the total cash outflow is $26,000.