User Account

All Pages

Calculate the present value of income streams

Assignment Help Business Management
Reference no: EM131299217

You're 20 years old and you're trying to decide which career path to take based on the future expected streams of income. Occupation A has you earning $15,000 per year for the next 5 years, then $25,000 per year for the next 30 years. Occupation B has you earning only $1,000 per year for 4 years, then $10,000 per year for 6 years, and finally $50,000 per year for the next 25 years. You plan to retire when you are 55.

a. Write out a formula to calculate the present value of each of these income streams, assuming the interest rate is r. (Hint: you can write "..." instead of all 35 terms when its obvious the next term in sequence)

b. What occupation would be better if the interest rate was zero? If it was extremely high?

Reference no: EM131299217

Questions Cloud

For the miller divider of figure determine the loop gain : For the Miller divider of Figure, determine the loop gain. Assume the tanks in the drains of M1 and M2 can be replaced by a resistance of RP at resonance.
Write a program in c++ to test the performance : Write a program in C++ to test the performance of quick select algorithm (L12 slide 7-9) under different group size setting. In the slides, to find the pivot, the algorithm divide all elements into group of 5,
What is this kind of sample called : What is that chance? Why is your sample not an SRS? What is this kind of sample called?
Production possibilities curve less efficient : 1. Why is a point below the production possibilities curve less efficient than a point on that curve? 2. Distinguish a change in demand and a change in quantity demanded. What are the causes of change in demand and quantity demand?
Calculate the present value of income streams : a. Write out a formula to calculate the present value of each of these income streams, assuming the interest rate is r. (Hint: you can write "..." instead of all 35 terms when its obvious the next term in sequence) b. What occupation would be bett..
Design an experiment : You have a questionnaire to measure interest in majoring in statistics, and you have 50 first-year students to work with. Outline the design of an experiment to decide which brochure works better
Investigate the relationship between tumour size : It gives the body fat percentage, age and gender for 18 normal adults between the ages of 23 and 61 years. Are age and % fat related, and if so, in what way? There is correlation.
The mixer suffers from port to port feed throughs : Prove that the Miller divider of Figure does not exhibit spurs at the output even if the mixer suffers from port-to-port feed throughs.
Describe the lg companys erp system profile : I need a couple of paragraphs describing the LG company's ERP system profile. Including a paragraph about LG's rational for choosing this system.

Reviews

Write a Review

Business Management Questions & Answers

  Known in such business under an assumed name

An attorney who was once a well-known T.V. and radio personalit

  What are the two types of serial transmission

1. How many Hamming bits are required for a message sequence that is 57 bits long? 2. What are the two types of serial transmission?

  Maintain the pegged exchange rate

Discuss what policy makers must do to maintain the pegged exchange rate. Also discuss what effect this will have on domestic output and net exports.

  Discuss the business relationship

Discuss the business relationship

  Discuss equity based ceo compensation in current corporate

discuss equity based ceo compensation in current corporate governance environmentplease state whether you believe

  Explain which structure failed to cure unlevel ills

Illustrate what was unlevel trying to do when it introduced a new structure based on business groups in the mid 1990s? Explain why you think which this structure failed to cure unlevel ills?

  Monthly production capacity

The cost for keeping these in inventory for 1 month is estimated to be $6 per tent for each tent left at the end of the month. Formulate this as an LP problem to minimize cost while meeting demand and not exceeding the monthly production capacity.

  Identify the business problems of each of the given cases

Identify the business problems of each of the cases; describe the metaphor(s) used. Rank-order the critical issues stated in the cases Evaluate the proposed solutions. Are the solutions valid? Why or why not?

  Are the bankruptcy laws in the united states fair to small

Take a position and explain your reasons to the following statement: Are the bankruptcy laws in the United States fair to small business? If you could change the laws, state and justify the specific changes would you make. If you think the laws ar..

  Board of directors duties and education program

find three topics or issues you believe should be part of a mandatory director education program for any incoming board member of a company?

  Display the error message incorrect card number

A) You need to read the card number as a single string and each 4 numbers in the card must be separated by a space. For example, following is a correct input 1234 5678 6789 1235 B) Card number must have 16 digits. If not, display the error message ..

  Strategies for dealing with hrm challenges and trendsthese

strategies for dealing with hrm challenges and trendsthese are the three trends or challenges- one challenge for hrm is

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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