You own a successful business and you decided to sell the business for $950,000. However, the buyer of your business only welling to buy your business at that price if buy pays you in 10 instalments, each year for 9 year $100,000 per year and $250,000 and the end of year 10. What is the total present value of the money you will receive during the 10 years, if interest rate during this period is 12% annually compounding quarterly? 2. You are 22 years old and decided to travel the world as soon as you have the money for it. You estimate total cost of travelling $150,000. You currently have only $10,000 in an investment that earn interest of 11% annually compounding annually. At what age you will have enough money to travel the world?
1. You own a successful business and you decided to sell the business for $950,000. However, the buyer of your business only welling to buy your business at that price if buy pays you in 10 instalments, each year for 9 year $100,000 per year and $250,000 and the end of year 10. What is the total present value of the money you will receive during the 10 years, if interest rate during this period is 12% annually compounding quarterly?
2. You are 22 years old and decided to travel the world as soon as you have the money for it. You estimate total cost of travelling $150,000. You currently have only $10,000 in an investment that earn interest of 11% annually compounding annually. At what age you will have enough money to travel the world?
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