What is the equivalent present value of payments

Assignment Help Econometrics
Reference no: EM13207831

What is the equivalent present value of the following series of payments: $7000 the first year, $6500 the second year, $6000 the third year, $5500 the fourth year, and $5000 the fifth year? The interest rate is 10%, compounded annually.

Reference no: EM13207831

Questions Cloud

Determine the steady rate at which salary increases : Matt is a 25 year old engineer, and his salary next year will be $60,000. Matt expects that his salary will increase at a steady rate of 5% per year until his retirement at age 65. If he saves 10% of his salary each year and invest these savings
What must the average beta of the new stocks : What must the average beta of the new stocks added to the portfolio be to achieve the desired required rate of return? Attach your Excel file showing your calculations.
Possibility of creating another euro-like currency : There has been minimal discussions so far about the possibility of creating another Euro-like currency much closer to home. The talk is of a North American union of Canada, Mexico, and USA with a single currency
Calculate the change in ph a buffer solution : Calculate the change in pH when 9.00 mL of 0.100 M HCl(aq) is added to 100.0 mL of a buffer solution that is 0.100 M in NH3(aq) and 0.100 M in NH4Cl(aq).
What is the equivalent present value of payments : What is the equivalent present value of the following series of payments: $7000 the first year, $6500 the second year, $6000 the third year, $5500 the fourth year, and $5000 the fifth year The interest rate is 10%, compounded annually.
Era of globalization : Given the era of globalization that we are in, how important is the Fed today in any of the following roles
Define what is the lowest concentration that can be measured : what is the lowest concentration that can be measured with your spectrophotometer? For compound Y, which absorbs much more light at the same wavelength (a molar absorptivity of 30,000), what is the lowest concentration that can be measured?
Illegitimate political behaviours : Do you believe that it is ever justifiable to engage in illegitimate political behaviours such as backstabbing? If so, what are some conditions that might justify such behaviour?
Determine the equivalent annual worth of project : A rural utility company provides standby power to pumping stations using diesel-powered generators. an alternative has arisen whereby the utility could use a combination of wind and solar power generators, but it will be a few years before the ene..

Reviews

Write a Review

Econometrics Questions & Answers

  How much should you deposit in an account earning

You just inherited $10,000. while you plan to squander some of it away, how much should you deposit in an account earning 5% interest per year if you'd like to have $10,000 in the account in 10 years

  Gdp of brazil and the united states

Determine what is the state of the economy in brazil versus the united states and discuss the GDP of brazil and the united states?

  Question about mobile commerce

M-commerce also known as mobile commerce is being lumped in with several strategic internet plans. Explain some of the industries that are likely to use mobile commerce and how it is working for them.

  How much will be changes in mr smiths consumption

Mr. Smith has a weekly income of M = $24. Initially the prices of X and Y are both $2/unit and Mr. Smith buys 6 units each of X and Y each week, a bundle on indifference curve I0. Then, ceteris paribus, the price of X increases to $4/unit, with th..

  What is the optimal degree of air cleanliness after change

Suppose that a state provides subsidies for a company to build plants that contribute to air pollution. Cleaning up this pollution causes the marginal cost of air cleanliness to rise by $210,000 at each degree of air cleanliness. What is the optim..

  Do you anticipate earning a profit or a loss

You are a manager T Glass, Inc.- a mirror and window supplier. Recently, you conducted a study of the production process for your single-side encapsulated window. The results form the study are summarized in the table below, and are based on 5 uni..

  Calculate the monopolist profit maximizing price

A monopolist's has a constant marginal and average cost of $10 and faces a demand curve of QD = 1000 - 10P. Marginal revenue is given by MR= 100 - 1/5Q. A. Calculate the monopolist profit maximizing quantity, price and profit.

  Give compliment or a substitute for water balloons

Suppose this the demand for water balloons fit the function D(P, Ps)=.2P^(-.5)Ps^(-.2) where P is the price of water balloons and Ps is the price of super soakers (an advanced squirt gun technology). Based upon this demand curve, are super soakers..

  What is the number of degrees of freedom

Where Qx is the quantity demanded of Product X, Px is the price of X, Y is income, and r is the prime interest rate (given in decimals, e.g., 0.02 or 0.05) The standard error of each estimated coefficient is given in parentheses below it.

  Determine the present worth of the cranes repair costs

A construction company has purchased a crate that comes with a 3-year warranty. Repair costs are expected to average $3500 per year beginning in year 4 when the warranty expires. Determine the present worth of the crane's repair costs over its 15-..

  Determine the reaction function for each firm

Determine the reaction function for each firm. Firm 1: Q1 = - Q2, Firm 2: Q2 = - Q1 b. Calculate each firm's equilibrium output. c. Calculate the equilibrium market price. d. Calculate the profit each firm earns in equilibrium.

  Discuss how to write the demand curve

In Bayonne, NJ there is a large beauty salon and a number of smaller ones.The total demand function for hair styling per day is Q=180 - 10P, where P is in dollars The marginal cost function of all the small salons together is SMCf = 4+ 0.1Q

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd