Sharon Smith will receive $1.25 million in 30 years. The discount rate is 16%. As an alternative, she can receive $10,000 today. Which should she choose? (Round "PV Factor" to 3 decimal places.)
.
she should be indifferent.
the $1.25 million dollars in 30 years.
need more information.
$10,000 today.
Mike Carlson will receive $33,000 a year from the end of the third year to the end of the 15th year (13 payments). The discount rate is 8%. The present value today of this deferred annuity is: (Round "PV Factor" to 3 decimal places.)
$204,809
$223,533
$218,003
$226,054
The IF for the future value of an annuity is 7.336 at 8% for 6 years. If we wish to accumulate $17,000 by the end of 6 years, how much should the annual payments be? (Round "FV Factor" to 3 decimal places.)
$2,317
$2,593
none of these
$3,093
Mr. Dow bought 100 shares of stock at $13 per share. Three years later, he sold the stock for $19 per share. What is his annual rate of return? Use Appendix B for an approximate answer, but calculate your final answer using the financial calculator method. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Morgan Jennings, a geography professor, invests $93,000 in a parcel of land that is expected to increase in value by 12 percent per year for the next six years. He will take the proceeds and provide himself with a 16-year annuity.
Assuming a 12 percent interest rate, how much will this annuity be? calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)