+1-415-670-9189
info@expertsmind.com
Time value of money problems
Course:- Microeconomics
Reference No.:- EM13700113




Assignment Help
Assignment Help >> Microeconomics

Calculate the following time value of money problems.

a. What is the future value of 24 periodic payments of $4,620 each made at the beginning of each period and compounded at 8%?

b. What would you pay for a $194,000 face value bond that matures in 15 years and pays $19,400 a year in interest if you wanted to earn a yield of 9%.

c. Mike Finley wishes to become a millionaire. His money market fund has a balance of $317,283 and has a guaranteed interest rate of 11%. How many years must Mike leave that balance in the fund in order to get his desired $1,000,000?

d. Andrew Bogut just received a signing bonus of $1,000,000. His plan is to invest this payment in a fund for 8 years (his planned retirement date). If Bogut plans to establish the AB Foundation once the fund grows to $1,850,930, what annually compounded interest rate must he earn to achieve his goal?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Brand names can be important to the success of a firm in some industries. Consider industries that demonstrate monopoly, monopolistic competition, oligopoly, and perfect compe
Mary Smith, a customer, buys the Best product to use in the demolition of her office building. Due to a defect in the product, John Doe, an employee of Mary's, is injured. H
Officials at City Bus Corporation increased fares(prices last year and were surprised to find that total revenue fell that year instead of increasingas expected. This tells us
Trade is behind China and India's spectacular growth for the past two decades. What makes China and India so competitive in the global market. How will the world adapt to Ch
When price of coke rises from $5 to $7, quantities demanded for coke falls from 1000 to 800, and quantities demanded for pepsi rises from 300-400.  Calculate the cross elastic
Should the line be used to predict the weight loss after 1 hour? If so, predict the weight loss. If not, explain why not. Should the line be used to predict the weight loss
The antitrust divisions of government are limited by the resources allocated to their activities. Given the likelihood of violations of antitrust laws, why do you suppose the
What is the key difference between a change in price and a change in any other factor affecting demand on the demand curve - Explain the differences between a market economy a