xplain why this statement is true: a dollar in hand today wis worth more than a dollar to be received next year. provide relevant examples to support your explainati
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explain why this statement is true: a dollar in hand today wis worth more than a dollar to be received next year. provide relevant examples to support your explaination
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- Refer to the present value table information on the previous page. If Kathleen put 3,000 in a savings account today, what amount of cash will be available 2 years from today? a. 3,000 0.857 b. 3,000 0.857 2 3,000 c. 4,000 0.681 0926 d. cannot be determined from the information givenRefer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264If you are saving the same amount each month in order to buy a new sports car when the new models are released, which of the following will help you determine the savings needed? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
- Explain why this statement is true: A dollar in hand today is worth more than a dollar to be received next year. Provide relevant examples to support your explanation.Explain why this statement is true: A dollar in hand today is worth more than a dollarto be received next year.You have just received a windfall from an investment you made in a friend’s business. You will receive end-of-year cash flows of $14,050, $3,250 and $16,480 for years 1 to 3, respectively. If the annual discount rate is 6%. a) What is the value of your windfall today? b) What is the value of your windfall at the end of year 3?
- e. Suppose that a person deposits $2500 in a savings account atthe end of each year for the next 15 years. If the bank pays8% per year per year, compounded daily, how much moneywill the person have by the end of the 15th year? include a non-excel cash flowWhat is the present value of a savings account that is expected to pay $1,250 of cash inflow at the end of year 1, $0 cash inflow at the end of year 2 and $1,050 cash inflow at the end of 3rd year given the rate of return 10% in the first and second year and 12% in the third year? Please Show the workUsing the future values tables, solve the following: Us ing the future values tables, solve the following: What is the future value on December 31, Year 10, of 10 cash flows of $20,000 with the first cash payment made on December 31, Year 1, and interest at 10% being compounded annually?
- Suppose you receive$130 at the end of each year for the next three years. a. If the interest rate is10%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in(a)? c. Suppose you deposit the cash flows in a bank account that pays 10%interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?under time value of money, a one dollar today is the same as a single dollar after 2 weeks. is it true or false?Your uncle told you that he would give you his coin collection. He just got it appraised and it is worth $3734. If the collection is expected to grow in value by 5.57% each year, how much will it be worth in 8 years? show fomular. Answer:
