Determine the approximate value of investment

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Reference no: EM1350678

LED Computer Electronics is considering an investment that will have cash flows of $5,000, $6,000, $7,000 and $10,000 for years 1 through 4. What is the approximate value of this investment today if the appropriate discount rate is 9% per year?
$22,250
$30,520
$22,120
None of the above

You deposited $3,000 in your bank account today. An increase in which of the following will increase the future value of your deposit assuming that all interest is reinvested? Assume the interest rate is a positive value. Select all answers that apply:
interest rate
initial amount of your deposit
frequency of the interest payments
length of the investment period

If you borrow $50,000 today at 10% interest for eight years. How much of your second payment will be applied towards the principal of the loan?
$5,000
$4,372
$4,809
can not be determined with the information given

Reference no: EM1350678

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