Accumulate money for his down payment

Assignment Help Operation Management

Reference no: EM131811014

1. How much will you pay someone today in order to receive $6,000 each year for the next 10 years? Your opportunity cost of capital is 7%, show work.

2. Would you pay someone $500 today to get $600 in five years if your opportunity cost of capital is 7% (opportunity cost of capital is the rate you expect to make) show your work.

3. John plans to buy a vacation home in 7 years from now and wants to have saved $87,902 for a down payment. How much money should he place today in a saving account that earns 4.21 percent per year (compounded daily) to accumulate money for his down payment?

Reference no: EM131811014

Questions Cloud

What are some factors to consider in order to protect : What are some factors to consider in order to protect your identity and securing your credit information?

Actually make the investment that is insured : Why can an investor buy insurance on a risk that the investor does not actually have because the investor did not actually make the investment that is insured?

Government officially floated the venezuelan bolivar : The Venezuelan government officially floated the Venezuelan Bolivar (Bs) in February 2002.

Request involves cash management and identity theft : Our second Resource List request involves Cash Management / Identity Theft /Credit Management.

Accumulate money for his down payment : How much money should he place today in a saving account that earns 4.21 percent per year (compounded daily) to accumulate money for his down payment?

What is the book value of klingon assets today : Klingon Cruisers, Inc., purchased new cloaking machinery five years ago for $15 million. What is the book value of Klingon's assets today?

What is the estimated value of brushy mountain stock : what is the estimated value of Brushy Mountain’s stock?

Compute the income tax : Compute the income tax due from XYZ, X, Y and Z for the year if XYZ Partnership is a:

What is the expected loss value and standard deviation : What is the Expected Loss value and Standard Deviation of the loss for each owner? They are pooling their losses.

User Account

All Pages