How do i solve the question below: You are looking at an...

50.1K

Verified Solution

Question

Finance

How do i solve the question below:

  1. You are looking at an investment that will pay you $27,250 in year 2, $44,098 in year 4 and $49,414 in year 6. If your required return is 8.49%, what is the most you should pay for the investment? (In other words, how much is the project worth today?)

2. If you have $485 today and you think you can earn an interest rate of 6% per year, how many years until you have $716?

3. An investment will pay $24,668 in 20 years. If the interest rate is 13.79%, how much is it worth today? (Round to 2 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students