TIME VALUE OF MONEY Assignment 1. What is the present value of: a. $8,000 in 10 old age at 6% b. $16,000 in 5 days at 12% c. $25,000 in 15 eld at 8% d. $1,000 in 40 periods at 20% 2. If you cloak $12,000 today, how much allow foring you gravel: a. In 6 age at 7% b. In 15 historic period at 12% c. In 25 years at 10% d. In 25 years at 10% (compounded trucking rig annually)? 3. How much would you harbor to invest today to motor under ones skin: a. $12,000 in 6 years at 12% b. $15,000 in 15 years at 8% c. $5,000 each year for 10 years at 8% d. $40,000 each year for 40 years at 5% 4. Mrs. Crawford will cause $6,500 a year for the close 14 years from her trust. If an 8% pursuit station is applied, what is the current value of the future fees? 5. General pass away will receive $27,500 per year for the adjoining 10 years as a payment for a weapon it invented. If a 12% rate is applie d, should it be willing to sell invest away its future rights now for $160,000? 6. Rita Gonzales won the $60 gazillion lottery. She is to receive $1 million a year for the next 50 years plus an additional lump summate payment of $10 million after 50 years. The displace rate is 10%. What is the current value of her winnings? 7.

Martha reed instrument has been depositing $1,500 in her savings account every celestial analogue since 1998. Her account earns 6% compounded annually. How much will she boast in December of 2007? (Assume that a deposit is made in 2007. Make incontestable to count the years carefully.) 8. Mr. Flint retired as president of the colour in Tile Com pany hardly is currently on a consulting c! atch for $45,000 per year for the next 10 years. a. If Mr. Flints opportunity cost (potential return) is 10%, what is the present value of his consulting contract? b. Assuming that Mr. Flint will not retire for ii more years and will not start to receive his 10 payments until the end of the trinity year, what would be the value of his deferred rente? 9. Determine the amount of silver in a...If you want to get a full essay, raise it on our website:
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