User Account

All Pages

Determine the unknown lump sum amount

Assignment Help Finance Basics
Reference no: EM131238353

Sam has just won the lottery. Specifically, Sam has won the lump sum amount of $2000, but he must wait until the end of 3 years to receive the money. Sam is in need of cash and would rather receive a different pattern of payments: $325 today and then receive some unknown lump sum amount that will be received in 3 years. Using an interest rate of7.50%, determine the unknown lump sum amount that would make the present value of both prizes equivalent.

Reference no: EM131238353

Questions Cloud

Prepare general journal entries for the balance day : ACC101 - Fundamentals of Accounting Assignment. Adjusting the accounts and preparing financial statements - Prepare general journal entries for the balance day adjustments
Define multiplexer and binary decoder : Define priority encoder Define multiplexer. Define binary decoder. What are the two steps in gray to binary conversion? Write the names of Universal gates.
What are combinational circuits : What is Digital Electronics? What are combinational circuits? Define binary logic. Define logic gates. Define Truth Table. What is Min term? What is Max term? Define K Map. Define duality property. State De Morgan's theorem
Describe the importance of having a good understanding : With this knowledge and experience, describe, in your own words, the importance of having a good understanding of databases and database design. Why do you think it is important?
Determine the unknown lump sum amount : Using an interest rate of7.50%, determine the unknown lump sum amount that would make the present value of both prizes equivalent.
Find nodal displacements and axial stress in each element : A steel rod subjected to compression is modeled by two bar elements, as shown in Figure P2.10. Determine the nodal displacements and the axial stress in each element. What other concerns should be examined?
Determine the present value of cash flow stream : Because of high administrative costs associated with running the lottery, the payment in year 5, and only in that specific year, is not $550 but $0. Using an interest rate of 4.25%, determine the present value of this cash flow stream.
Present value of settlement assuming the interest : Jonny just received a settlement in a lawsuit that promises $350 in 5 years. The lawsuit will also pay him a second amount of $550 that will be received in 10 years. Jonny wants instead to spend the settlement money today. What is the present valu..
Propose a feedback control method : The distillation column shown in the drawing is used to distill a binary mixture. Symbols x, y, and z denote mole fractions of the more volatile component, while B, D, R, and F represent molar flow rates.

Reviews

Write a Review

Finance Basics Questions & Answers

  Computing time value of money problems

(Monthly compounding) If you bought a $1,000 face value CD which matured in nine months, and which was advertised as paying 9% annual interest, compounded monthly, how much would you receive if you cashed in your CD at maturity?

  Chaffee company is considering an investment that will

chaffee company is considering an investment that will return a lump sum of 750000 six years from now. what amount

  Financial advisor for a wealth management company

You work as a financial advisor for a wealth management company. A new client requested an appointment with you and your team of advisors.

  Compute the yield curve for the next three years

Suppose that the interest rate on one-year bonds is 4 percent today, and is expected to be 5 percent one year from now and 6 percent two years from now. Using the Expectations Hypothesis, compute the yield curve for the next three years.

  Which project has the higher mirr

whose costs and cash flows are shown below:The projects are equally risky, and their cost of capital is 12%. You must make a recommendation, and you must base it on the modified IRR (MIRR). Which project has the higher MIRR?

  Suggest a forward contract on the stock market index

consider a forward contract on a stock market index. identify the false statement. everything else being constanta. the

  What is the expected gainloss from the forward hedging if

cray research sold a super computer to the max planck institute in germany on credit and invoiced euro10 million

  Financial measurements in manufacturing

The PQ Piston Plant makes two sizes of pistons for reciprocating engines. Their plant has 4-machines. Currently, the demand for their products is 100 'p" pistons every week,

  Assume a retention ratio of 045 and a historical return on

abc co. has the following dividend payment historyyearnbspnbspnbspnbspnbspnbspnbsp dividend2003nbspnbspnbspnbspnbspnbsp

  What is the rate of inflation

The nominal rate of return on the bonds of Stu's Boats is 8.75 percent. The real rate of return is 3.8 percent. What is the rate of inflation?

  Corporation difficulties of financial markets

Given the current state of the economy and our financial markets, is it more desirable for firms to increase money through debt or through equity at this time.

  Create an equally weighted portfolio of five computer

create an equally weighted portfolio of five computer software stocks. is such a portfolio a diversified portfolio?

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