Uniform series of payments, Macroeconomics

Assignment Help:

Your project has an estimated cost for land reclamation to be realized at the end of 20 years from today for $70,000,000. If current bond long-term interest rates are 7% compounded annually, what would you need to invest in zero-coupon bonds today to cover the estimated cost after 20 years. (We will learn about zero-coupon bonds later. For now, just calculate the present value (P) at time zero for a future value (F) of $70,0000,000 20 years from today at an interest rate of 7% compounded annually.)

What uniform series of payments (A) at the end of periods 1 through 20 would also cover the year 20 cost? (Use 7% interest.)


Related Discussions:- Uniform series of payments

Determine elasticity of demand , Consider the consumption decisions of R.B....

Consider the consumption decisions of R.B. Turbo, a new student at T University. Ms. Turbo has only available $1,000 in monthly income to spend on food and housing. In te

Classical model, determination of interest rate in classical model

determination of interest rate in classical model

Progressive income tax, Because the structure of the personal income tax is...

Because the structure of the personal income tax is progressive, a larger share of income is taxed at higher rates as real income increases. Therefore, economic growth automaticall

Internatinal trade, how can a country maintain equilibrium GDP with foreign...

how can a country maintain equilibrium GDP with foreign trade?

What are the economic reasons for protectionism, Question 1: (a) What ...

Question 1: (a) What are the characteristics of market and command economies? (b) In a number of countries in recent years, there has been a movement towards a greater rel

Marginal abatement cost curve, A critically important criterion that must b...

A critically important criterion that must be considered in evaluating environmental policies is whether they provide strong incentives for people to find new ways to improve ambie

Firms in the circular flow, We divide all firms into 3 categories: FR inclu...

We divide all firms into 3 categories: FR includes all firms which acquire raw material (iron ore, farm products and so on), FH all those that produce semi-manufactured goods (stee

Consumption, Consider two consumers, A and B. A and B both want perfect con...

Consider two consumers, A and B. A and B both want perfect consumption smoothing (c = cf) and both have no current wealth. However, the two consumers have different income streams.

Functions of commercial bank - buying government securities, Buying ...

Buying government securities: When a commercial bank buys government bonds, the effect is substantially the same as that of lending - new money is created. To

World real gdp per capita, ihave real gdp per capita for all countries in w...

ihave real gdp per capita for all countries in world .. how can i calculate world real gdp per capita by using the data.

Write Your Message!

Captcha
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