What is the present worth of the total payments

Reference no: EM13695893

What is the present worth of the total 20 payments, occurring at the end of every four months (i.e. the first payment is in four months), which is $400, $500, $600, increasing by a fixed sum. Interest is 12% nominal per year, compounded monthly.

Reference no: EM13695893

Questions Cloud

Traffic light is set to switch from red to green : A traffic light is set to switch from red to green according to a uniform distribution with a mean of 45 seconds. The difference between the smallest and largest number of seconds it takes the light to switch is 8 seconds.

Explain the meaning of monetary neutrality : Explain the meaning of monetary neutrality and illustrate graphically that there is monetary neutrality in the long run in the aggregate demand–aggregate supply model.

Profit-maximizing price and quantity chosen by monopolist : A monopolist faces a market demand curve given by P=12-2Q and has a total costs given by TC=6+Q^2. What is the profit-maximizing price and quantity chosen by the monopolist? What is the monopolist's profit?

Aggregate-demand curve slopes downward : The aggregate-demand curve slopes downward because it is the horizontal sum of the demand curves for individual goods. The long-run aggregate-supply curve is vertical because the price level does not affect long-run aggregate supply. If firms adjuste..

What is the present worth of the total payments : What is the present worth of the total 20 payments, occurring at the end of every four months (i.e. the first payment is in four months), which is $400, $500, $600, increasing by a fixed sum. Interest is 12% nominal per year, compounded monthly.

Charge the interest rate on credit cards : Because credit card companies and banks must charge the same interest rate on credit cards to all borrowers, there is an adverse selection problem with credit cards.

Calculate the mean-median-range and standard deviation : Calculate the mean, median, range, and standard deviation of home price and size. For the assignment document you will submit, you can cut and paste the answers from the Analysis ToolPak, or you can place your results in the same Excel sheet

Discuss the factors that are affecting market for gasoline : The prices of petroleum products in the world market are constantly in the news and associated with them is the falling gasoline prices in the United States. In an essay, discuss the factors that are affecting the market for gasoline.

Characteristics of both depository banks and shadow banks : Which of the following are characteristics of both depository banks and shadow banks? Check all that apply.

User Account

All Pages