User Account

All Pages

Exchange for future payment

Assignment Help Finance Basics
Reference no: EM133110905

You will receive a payment of $5,000 six years from now. Your friend is willing to pay you $4,500 now in exchange for your future payment. Assuming a discount rate of 4% (compounded), which is worth more today, the payment of $5,000 in six years or your friend's payment today of $4,500?

Reference no: EM133110905

Questions Cloud

Net present value of the project : 1. You are tasked to evaluate a certain project will cost P9,500 and will earn cash inflows, after tax, of P3,000 for four years with a minimum desired rate of
What are some methods for estimating bad debts : Question - What are some methods for Estimating bad debts? What are some features and advantages and disadvantages of each
Credit risk of the bonds : Land'o'Toys is a profitable, medium-sized, retail company. Several years ago it issued a 7 percent coupon bond, which pays interest quarterly. (Par Value is $1,
Should the company make or buy the engines : In addition, variable factory overhead is applied at $7.50 per unit. The vacuums sell for $150 each. Should the company make or buy the engines
Exchange for future payment : You will receive a payment of $5,000 six years from now. Your friend is willing to pay you $4,500 now in exchange for your future payment. Assuming a discount r
How much is the required monthly payment : 1. Consider a 25-year fixed-rate mortgage for $160,000 at a nominal interest rate of 8.80%.
Human services organizations and environments : Explain how systems theory can help administrators understand the relationships between human services organizations and their environments.
The crash of 1929 newspaper article : Newspaper ad in 1928-write an ad for the newspaper for one of the top stocks. Discuss how the stock is doing, the highs and lows and why all people, young and o
Is it possible for cooperation to triumph over competition : Is it possible for cooperation to triumph over competition - Please type your response directly into the text box that is provided; do not attach a document

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculation of cash collection and ending accounts

Calculation of cash collection and ending accounts receivables and Budgeted sales for the second quarter of the year for Reuben Company are as follows

  Obtain the investor''s payoff at expiry

Explain how to obtain the investor's payoff atexpiry for each of the following ranges of ABC's share price and illustrate in a diagram.

  Identify any arbitrage opportunities

Explain how you would create a synthetic stock position and identify the cost. Suppose you observe a $100 stock price, identify any arbitrage opportunities.

  Prepare an invoice using the following guidelines

Gratuities .22% Gratuities on Food, liquor, beer and wine only State Sales Tax .07% on everything including the gratuities

  The difference between a swap broker and a swap dealer

Describe the difference between a swap broker and a swap dealer. What is the necessary condition for a fixed-for-floating interest rate swap to be possible?

  Explain the purpose of an income statement

In a two- to three-page paper (excluding title and reference pages), explain the purpose of an income statement and how it reflects the firm's financial status.

  Calculate the economic order quantity

The cost of ordering the chemicals is RM20 per order. The cost of holding the chemicals in the warehouse is RM2 per liter per year. The lead time is 7 days.

  Which type of budgeting system is most appropriate

In your professional judgment, which type of budgeting system is most appropriate for public administration? Why do you feel this way?

  Discuss problem related to financial statements

In your post, choose one of the financial statements and explain how a manager would use the statement to drive financial analysis and decision-making.

  What was residual income for the quarter

The average net book value of assets during the quarter was $1.5 million. If the company has a required rate of return of 15 percent on investment, what was residual income for the quarter?

  What was the issue price on january 1, 2014

What amount of interest expense should be recorded on (a) June 30, 2014? and (b) December 31, 2014?

  Account the thirty year period

Marci invests $50,000 in an account earning 3% interest per year. How many $ will she have in his account in thirty years?

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