Equivalent amount of money that can be spent seven years

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Reference no: EM131424695

1. The equivalent amount of money that can be spent seven years from now in lieu of spending $50,000 now at an interest rate 18% per year is closest to:

a. $15,700

b. $159,300

c. $199,300

d. $259,100

2. At an interest rate of 8% per year, the present worth in year 0 of a lease that requires a payment of $9,000 now and amounts increasing by 8% per year through year 7 is closest to:

a. $60,533

b. $65,376

c. $72,000

d. $69,328

Reference no: EM131424695

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