Introduction to valuation

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Assignment Problems –Introduction to Valuation

1) Assume you deposit $10,000 today in an account that pays 6 percent interest. How much will you have in five years?

2) Suppose you have just celebrated your 19th birthday. A rich uncle has set up a trust fund for you that will pay you $150,000 when you turn 30. If the relevant discount rate is 9 per cent, how much is this fund worth today?

3) You have been offered an investment that will double your money in 10 years. What rate of return are you being offered?

4) You have been offered an investment that will pay you 9 percent per year. If you invest $15000, how long until you have $30000? How long until you have $45000?

Reference no: EM131525017

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