Present cost for a 5-year contract

Assignment Help Business Economics

Reference no: EM131807465

Bob lost his job and had to move back in with his mother. She agreed to let Bob have his old room back on the condition that he pay her $1000 rent per year, and an additional $1000 every other year to pay for her biannual jaunt to Florida. Since he is down on his luck, she will allow him to pay his rent at the end of the year. If Bob's interest rate is 15%, how much is the present cost for a 5-year contract? (Trips are in years 2 and 4.)

Reference no: EM131807465

Questions Cloud

What is the present worth of the new product : The first cost to complete design and tooling will be $950K. The interest rate is 10%. What is the present worth of the new product?

What is the present worth of rebuilding : The interest rate is 12%. What is the present worth of rebuilding the dragline?

Strategy to understand nonverbal cues in group setting : What would be the best strategy to understand nonverbal cues in a group setting?

Prepare the statement of cash flows of metagrobolize : During 2011, equipment with a cost of $290,000 was sold. Prepare the statement of cash flows of Metagrobolize for the year ended December 31, 2011

Present cost for a 5-year contract : If Bob's interest rate is 15%, how much is the present cost for a 5-year contract? (Trips are in years 2 and 4.)

Contingencies without affecting personal performance : Describe how you could respond to contingencies without affecting personal performance.

What is tuition per credit hour each year : State funds currently pay half of the costs for City U., while tuition pays the rest. What is tuition per credit hour each year for the next 5 years?

How far must manufacturers go to ensure product safety : How far must manufacturers go to ensure product safety? Discuss and debate the extent to which you think business ethics differs from ethics in other contexts.

The balance in the supplies account should be : At february 1 2017 the balance in sheridan company supplies account was 2940. during february, sheridan purchased supplies of 2520 used supplies of 3360.

User Account

All Pages