1) We receive $3,000 per semester and $87,000 in 9 years from the present.
What ROR did we attain, if we now invest $4,000?
2) We buy an asset for $20,000. We receive money to the tune of ___ per month.
At the end, 4 years later, we are paid $12,000. The ROR is 10%. What was that money receipt?
Required:
Use time value formulas,
1) future value of a single sum
2) future value of an annuity
3) Present value of a future value
4) Present value of an annuity.