What is the present value of series of payments

Assignment Help Business Economics
Reference no: EM132137009

Consider the following series of payments:

Year 0: 20

Year 1: 30

Year 2: 40

Year 3: 10

Year 4: 5

Using an interest rate of 10%:

a. What is the present value of this series of payments?

b. What is the future value of this series of payments in year 5?

Reference no: EM132137009

Questions Cloud

Proportion of shafts with a diameter : Many manufacturing problems involve the accurate matching of machine parts, such as shafts, that fit into a valve hole.
What is the most that this contract : What is the most that this contract would be worth today if:
Simulates simple banking interface similar to online banking : ITECH1400 - Foundations of Programming Assignment - FedUni Banking, Federation University. Simulates simple banking interface similar to online banking
What can it do to improve its situation : 1) A firm's marginal rate of technical substitution at M P L/M P = 3, and the ratio of prices of labor and capital ,w/r, is 4.
What is the present value of series of payments : a. What is the present value of this series of payments? b. What is the future value of this series of payments in year 5?
Income elasticity of demand for good : Income effects depend on the income elasticity of demand for each good that you buy. If one of the goods you buy has a negative income
Positive economic statement and a normative one : What is the difference between a positive economic statement and a normative one
Planning requirement and other investment : Do you think the practice would be costly in terms of huge planning requirement and other investment?
Determine the sex of an unborn baby : A certain device is used to determine the sex of an unborn baby, but the device is not very reliable. If the fetus is truly a boy, the device says BOY

Reviews

Write a Review

 

Business Economics Questions & Answers

  Conduct open market operations to achieve its goal

If real GDP is lower than potential GDP and RBA wants to keep real GDP at its potential level, should the RBA use a contractionary or expansionary policy?

  Fabricated aluminum products for aerospace

Metallic Engineering, Inc., a manufacturer of fabricated aluminum products for aerospace, engineering, automotive, and custom industrial applications.

  Examples is an adverse-selection problem

Which of the following examples is an adverse-selection problem and which is an incentive problem? Explain why. In each case, give one method that the restaurant might use to reduce the problem. A restaurant decides to offer an all-you-can-eat buffet..

  Commonly bought and sold in the economy

Identify one product that is commonly bought and sold in the economy that has experienced a recent price change. Based on your understanding from the readings and the other material from this module, provide three reasons why you think that price has..

  Hazelnut chocolate bar

If you purchase one 150g Hazelnut Chocolate bar, what is the probability that its net weight is under weight (i.e. less than 150g)?.

  Bond par value and market value

What is the impact of the coupon rate and yield to maturity (YTM) on the bond par value and market value?

  Other things being? equal-depreciation of the dollar

Other things being? equal, a depreciation of the dollar

  Loanable funds market for the united states

Draw a correctly labeled graph of the loanable funds market for the United States, and label the equilibrium interest rate as r* and the quantity of funds as QF

  What will happen to output assume that consumer confidence

Suppose that consumers decide to consume less (and therefore to save more) for any given amount of disposable income. Specifically, assume that consumer confidence (c0) falls. What will happen to output.

  Elucidate at what price will cpt sell admission tickets

Daily demand for admission tickets can be written as P = 36 - 0.05Q so that MR = 36 - 0.1Q, where P is the price of a ticket and MR is the marginal revenue. Elucidate at what price will CPT sell admission tickets to maximize its profit.

  Problem regarding the absence of externalities

Question 4 Which of the following characteristics best defines a public good? Question 5 The market works efficiently in the absence of externalities if the good is: Question 6 Visiting the public beach during summer is an example of an activity that..

  Optimal consumption bundles for the consumer

An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price of $2/unit of food. Would the consumer prefer to get $100 in food stamps or $100 in cash? You need to justify your answer t..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd