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What would you pay for an investment

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What would you pay for an investment that pays you $5300000 after fifty years? Assume that the relevant interest rate for this type of investment is 8%.

Vaughn Manufacturing makes an investment today (January 1, 2017). They will receive $92000 every December 31st for the next six years (2017 - 2022). If Vaughn wants to earn 12% on the investment, what is the most they should invest on January 1, 2017?

Ethan has $250000 to invest today at an annual interest rate of 4%. Approximately how many years will it take before the investment grows to $416000?

Reference no: EM132146277

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