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How much would be willing to sell the contract for

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Reference no: EM132764319

Problem 1: You currently receive RM10,000 per year on a contract. You expect it to run another 7 years. Someone wants to buy the contract from you. If you can earn 12 percent on other investments of this quality, how much would you be willing to sell the contract for?

Problem 2: You deposit RM3,500 into an account every year for 6 years. The account pays 7% interest. How much will you have at the end of that time?

Reference no: EM132764319

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