What is the present value of this sum of money

Assignment Help Financial Management

Reference no: EM131962507

A) $74,236 will be received in 14 years. The appropriate discount rate is 6.14%. What is the present value of this sum of money? Write your answer as a positive number.

B) For an annuity in arrears, what annual payment is required to accumulate $493,955 in 14 years at an interest rate of 12.82? Key your answer in as a positive number.

C) To stay "even" (same purchasing power) with inflation forecast at 4.7% per year, what would your salary need to be in 9 years if you currently earn $51,674 per year? Key your answer in as a positive number.

Reference no: EM131962507

Questions Cloud

Directly in the foreign exchange market : Suppose that you need to buy 6 pounds using French francs. If you buy 6 pounds directly in the foreign exchange market,

What is the expected capital gains yield-yield to maturity : What is the yield to maturity? For the coming year, what is the expected capital gains yield?

Major cultural change for department of defense : Do you think the shift to ope-source software involved a major cultural change for the department of defense?

What is the unit contribution for yabba dabba doo : What is the unit contribution for Yabba Dabba Doo? hat market share does Yabba Dabba Doo need to break even? What is Yabba Dabba Doo’s profit?

What is the present value of this sum of money : $74,236 will be received in 14 years. The appropriate discount rate is 6.14%. What is the present value of this sum of money?

Call premium and can declare capital gain on tax returns : Since the bonds have been called, investors will receive a call premium and can declare a capital gain on their tax returns.

What are the two components of interest rate risk : What are the two components of interest rate risk? What is the correlation of each to interest rate risk?

Who are priceline competitors : What are Priceline’s internal strengths and weaknesses? Who are Priceline’s competitors?

What is reinvestment risk : What is reinvestment risk? Does it occur when a bank is short funded or long funded? What movement in interest rates will result in a loss?

User Account

All Pages