How much is he willing to pay for this money machine

Assignment Help Financial Management

Reference no: EM131810732

1) Suppose you deposit $1,546.00 into and account 7.00 years from today into an account that earns 11.00%. How much will the account be worth 18.00 years from today?

2) Suppose you need to have $55,596.00 in an account 15.00 years from today and that the account pays 12.00%. How much do you have to deposit into the account 13.00 years from today?

3) Derek has the opportunity to buy a money machine today. The money machine will pay Derek $13,103.00 exactly 15.00 years from today. Assuming that Derek believes the appropriate discount rate is 5.00%, how much is he willing to pay for this money machine?

Reference no: EM131810732

Questions Cloud

Borrower has high credit score : If a borrower has a high credit score

Plot the curve flow across relief valve vs pressure : Use this data to deduce the shape of the relief valve curve. Plot this curve flow across relief valve (in3/s) vs. pressure (psi).

Excluded from monthly credit card statement : Which of the following can be excluded from a monthly credit card statement?

What pressure is required to accelerate the load : Molten metal is poured from a ladle. Total weight of the full ladle is 18 tons. Just as the pour begins, there is a power failure.

How much is he willing to pay for this money machine : Derek has the opportunity to buy a money machine today. how much is he willing to pay for this money machine?

What pressure drop must the pressure reducing valve maintain : A pressure-reducing valve is set to limit the force exerted by a clamping cylinder. The 1.5-in. bore cylinder must not exert more than 2900 lbf to prevent.

What is the maximum flow for the line : The inside diameter of a hydraulic hose is 0.375 in. It is recommended that the fluid velocity in a supply line not exceed 10 ft/s.

Cost of exchange settlement reserves to commercial banks : Modern central banks, target the cost of exchange settlement reserves to commercial banks and not the quantity of reserves.

How much torque is the motor delivering : A hydraulic motor has a displacement of 0.915 in3/rev, and the pressure drop across the motor is 1740 psi.

User Account

All Pages