What rate of interest was used in present value computation

Reference no: EM13262793

A local magazine is offering a $2,500 grand prize to one lucky winner. The prize will be paid in four annual payments of $625 each, starting one year after the drawing. How much would this prize be worth to you if you can earn 9 percent on your money?

A. $1,848.18
B. $2,024.82
C. $2,545.54
D. $2,450.14
E. $1,934.24

You have been told that you need $25,600 today in order to have $100,000 when you retire 35 years from now. What rate of interest was used in the present value computation? Assume interest is compounded annually.

A. 4.15 percent
B. 3.97 percent
C. 4.53 percent
D. 4.58 percent

Reference no: EM13262793

Questions Cloud

Calculate the nominal ahr capacity of the battery pack : The power required for traction at this velocity is 10kW. Assumed 10% drive train losses, and battery discharge efficiency is 80%. A 300V NiMH battery pack will be used for the Energy store with the following characteristics

What is the best description of an alkane : What is the best description of an alkane?

Find the angle of elevation of the hose : Firemen are shooting a stream of water at a burning building. A high-pressure hose shoots out the water with a speed of 23.0m/s as it leaves the hose nozzle. Find the angle of elevation of the hose

What is her uncorrected far-point distance : A nearsighted person wears contacts with a focal length of ? 6.5cm, what is her uncorrected far-point distance

What rate of interest was used in present value computation : A local magazine is offering a $2,500 grand prize to one lucky winner. The prize will be paid in four annual payments of $625 each, starting one year after the drawing. How much would this prize be worth to you if you can earn 9 percent on your mo..

Compute the emf of the coil : A 1000-turn coil of wire that is 2.4cm in diameter is in a magnetic field that drops from 0.15T to 0 T in 11ms, compute the emf of the coil

Explain what will the final count of hydrogen atoms be : A mole is equal to 6.02 x 10^23. 10 moles of hydrogen atoms are placed in a container. The hydrogen atoms are removed and counted one by one. What will the final count of hydrogen atoms be

What would be the weight used for equity in the computation : What would be the weight used for equity in the computation of FarCry's WACC?

Calculate a complete dupont analysis : calculate a complete dupont analysis calculating the ROE, ROA, profit margin, total aset turnover and equity mulitiplier from the conocophillips annual report, link to annual report supplied above.

User Account

All Pages