What is the present value of liability

Assignment Help Financial Management

Reference no: EM131977670

1. You currently have $20000.00 in a bank account that pays you 5 percent interest annually. You plan to deposit $800 (starting 1 year from now) every year for the next 10 years in the same account. How much are you going to have in that account at the end of 10 years?

2. You are to make monthly deposits of $1300 into a retirement account that pays 4 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 25 years?

3. The Miami Dolphins are considering paying Jonathan Martin a lump sum of $11967000 three years from now as part of a settlement. If the relevant discount rate is 9 percent, what is the present value of this liability?

Reference no: EM131977670

Questions Cloud

Explain the exchange rate risk : GE bids on contract on January 1 but will not know until April 1 if its bids is accepted, making a E10 million receivable on December 31 uncertain.

Estimate the firm cost of equity capital : Gator Enterprises is doing its annual review of its cost of capital. The firm relies on the CAPM to estimate its cost of equity.

Calculate the apv of the project : Using the adjusted present value method, calculate the APV of the project. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.

What is the effective interest rate of each loan : What is the effective interest rate of each loan?

What is the present value of liability : If the relevant discount rate is 9 percent, what is the present value of this liability?

Find the breakeven cost of gasoline : Assuming an interest rate of 3% per year and a study period of five years, find the breakeven cost of gasoline (BD/gal) if the vehicle will be driven 18,000.

Should the proposed discount be offered : Gardner Company currently makes all sales on credit and offers no cash discount. The firm is considering offering a 2% cash discount for payment within 15 days.

You paying in total interest over the life of the loan : If you repay the loan in 21 years how much are you paying in total interest over the life of the loan?

What is fair interest rate on moore corporation bond : You are considering an investment in 20-year bonds issued by Moore Corporation. What is the fair interest rate on Moore Corporation 30-year bonds?

User Account

All Pages