To raise money for a new business

Assignment Help Business Economics

Reference no: EM13834767

To raise money for a new business a man asks you to loan him some money. He offers to pay you $3000 at the end of four years. How much should you give him now if you want 12% interest per year on your money?

1. $1800.15

2. $1906.50

3. $2101.50

4. $1721.18

Reference no: EM13834767

Questions Cloud

What are the reaction curves : Assume there is a duopoly with the following demand equations Q1=30-P1+P2 and Q2=30-P2+P1. Marginal cost are given as MC1=6, MC2=0. Calculate the Bertrand solution. What are the reaction curves?

Assets change in value due to deterioration : In replacement analysis the challenger changes its first cost value every year that the analysis is performed. In replacement analysis the PW method is the best method to solve a problem. Assets change in value due to deterioration.

Determine the projected after-tax rate of return : A corporation expects to receive $32,000 each year for 15 years from the sale of a product. There will be an initial investment of $150,000. Manufacturing and sales expenses will be $8067 per year. Assume straight-line depreciation, a 15-year useful ..

Compute the monthly payment : An individual is considering the purchase of a used automobile. The total price is $6200 with $1240 as a down payment and the balance paid in 48 equal monthly payments with interest at 1% per month. The payments are due at the end of each month. Comp..

To raise money for a new business : To raise money for a new business a man asks you to loan him some money. He offers to pay you $3000 at the end of four years. How much should you give him now if you want 12% interest per year on your money?

How much will the bank pay for the mortgage : A couple sold their home. In addition to cash, they took a mortgage on the house. The mortgage will be paid off by monthly payments of $232.50 for 10 years. The couple decides to sell the mortgage to a lend bank. The bank will buy the mortgage, but r..

The maintenance on a machine is expected : The maintenance on a machine is expected to be $155 at the end of the first year, and increasing $35 each year for the following seven years. What present sum of money would need to be set aside now to pay the maintenance for the eight-year period? A..

What is the equivalent annual worth of the new machine : An existing machine is worth $2,500 today. Its $8,000 operating cost for this year is predicted to increase by $1,000 annually, owing to deterioration. It will be retired in 4 years, when its salvage value will be zero. what is the equivalent annual ..

A firm in a competitive input market : A firm in a competitive input market can

User Account

All Pages