Q1 a father on the day his son is born wishes to determine

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Q1. A father, on the day his son is born, wishes to determine what lump sum amount would have to be paid into an account bearing interest of 5% per year to provide withdrawals of P 20,000 on each of the son's 18th, 19th, 20th, as well as 21st birthdays.

Q2. Assume that you own a 10-acre plot of land that you would like to rent out to wheat farmers. For them, bringing in a harvest involves $30 per acre for seed, $80 per acre for fertilizer, as well as $70 per acre for equipment rentals as well as labor. With these inputs, the land will yield 40 bushels of wheat per acre. If the cost at which wheat can be sold is $5 per bushel as well as if farmers want to earn a normal profit of $10 per acre, what is the most that any farmer would pay to rent your 10 acres? $ What if the cost of wheat rose to $6 per bushel.

Reference no: EM13353590

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