What is the worth at the end of period

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Q1. What amount of equal end of period payments is required to completely pay off a current loan balance amount of 23,000 if the interest rate applied is 8.0% and the desire is to finish payments 18 periods from now?

Q2. An increasing amount cash flow has been projected for an investment in renewable energy. Based on an increases in the amount charged per unit of energy and growth in energy use, the payment of 3800 per period with the first payment one period from now is expected to increase by 300 each period thereafter for a total of 18 periods. Using a discount rate of 11.0 percent, what is the present worth of this payment stream?

Q3. Royalties from a patent are expected to start at 15,000 per period beginning one period from now and to decline by 500 each period thereafter until the technology is withdrawn from the market 23 periods from now. What is the worth at the end of period 12 of this stream of payments both past and future using an interest rate of 8.00%?

Reference no: EM132642349

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