To raise money for a new business, a friendasks you to loan her some money. Sheoffers to pay you $3,000 at the end of fouryears. How much should you give her nowif you want to earn 12% interest per yearon your money?Select one:O a. 1,906.56O b. 6,034.08O c. 1,859.23O d. 1,491.54O e. 4,720.56How much should be put in an investmentwith a 10% effective annual rate today tohave $10,000 in five years? (Using thefactor table for 10%)Select one:O a. $ 7,285O b. $ 8,285O c. We need more data to solve thisquestionO d. $ 6,209O e. $ 6,285Bank X is offering simple interest of 5% peryear on savings. Bank Y is offering 6% peryear compound interest. For $1,000principal which offer is more attractive ifwe wish to keep our savings in the bank for3 years? Choose the value for yourdecision.Select one:O a. 1,180.00O b. 1,191.02O c. 1,157.63O d. 1,150.00O e. 1,250.70

Hi Student, Thanks for posting the question. As per the guideline we are providing answer for the…

To raise money for a new business, a friend asks you to loan her some money. She offers to pay you $3,000 at the end of four years. How much should you give her now if you want to earn 12% interest per year on your money? Select one: O a. 1,906.56 O b. 6,034.08 O c. 1,859.23 O d. 1,491.54 O e. 4,720.56

To raise money for a new business, a friend asks you to loan her some money. She offers to pay you $3,000 at the end of four years. How much should you give her now if you want to earn 12% interest per year on your money? Select one: O a. 1,906.56 O b. 6,034.08 O c. 1,859.23 O d. 1,491.54 O e. 4,720.56

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A young woman placed $1000 (at time 0) in a saving account paying monthly interest After one year, her balance has grown to $1120. What was the effective interest rate (in percentage)? Select one: O a. 1.53 O b. 1.17 O c 0.95 O d. 0.8 O e 0,64
If money is worth 7%, obtain the present value of a perpetuity of P64,500.00 payable annually when the first payment is due at the end of 5 years. O a. P702,945.00 O b. P702,954.00 O c. P720,954.00 O d. P702,495.00
Suppose that you make a series of annual deposits into a bank account that pays 10% interest. The initial deposit at the end of the first year is $1,200. The deposit amounts increase by $300 in each of the next 4 years. How much would you have immediately after the 5th deposit? O s10,642.42 O $9,000.00 O $11,705.56 O $8,925.12
Consider the following sequence of deposits & withdrawals over a period of 4 years. If you earn 10% interest, what would be the balance at the end of 4 years? ? $1,210 2 $1,000 $1,000 , $1,500 O a. $3,660.25 O b. $2,710.00 C. $ 3,352.79 O d. $2,981.00
Find the uniform annual amount that is equivalent to a uniform gradient series in which the first year's payment is $6,800, the second year's payment is $6,550, the third year's payment is $6,300, and so on, and there is a total of 10 payments. The interest rate is 8%. Select one: O a. 5832 O b. 6026 O c 5639 O d. 6219 O e 6413
A loan of $245,000 is to be repaid in equal quarterly payments over a period of 5 years. If the interest rate is 14.5% compounded quarterly, what is the amount of unpaid principal at the beginning of the second year? O n. $309,156 O b. $104.203 O c. $218,858 O d. $217.228 O B. SI85,206 The annuul revernue, expenses, and deprecietion for a compeny ure S130,000; 32,000; and S15,000, respectively. What is the after-tux cushflow if the sffective income tax rate is 31S? O a. $52,820 O h. $25,730 Or $72.270 O d. $67.820 O e. S57,270 What is the value of (F/A, I, N) it (PlA, N) = 4.4354? O n. 2.2177 O b.4.4354 Oc 3.9919 O d. 18.3632 O e. 1.0000
A loan of $245,000 is to be repaid in equal quarterly payments over a period of 6 years. If the interest rate is 12.5% compounded quarterly, what is the amount of unpaid principal at the beginning of the second year? O a. $182,425 O b. $181,650 c. $293,242 d. $215,635 O e. $215,188
What is the total amount to be repaid on a fixed rate mortgage of $135,000 for 30 years if the annual interest rate is 7%? Years5% 5.5% 6% 6.5% 7% 7.5% 8% 8.5%9% 30 5.375.68 6.006.32 6.656.99 7.347.69 8.05 O O O O $323,190 $233,209 O $299,390 ○ $322,090
Suppose you are offered the alternative of receiving either $2,500 at the end of 6 years or $1,200 today. What interest would make you indifferent to your choice between $1,200 and the promise of $2,500 at the end of sixyears? OA 6% OC 13% OD 12% QUESTION 10 What single payment at the end of year 8 is equivalent to an equal annual series of payments Of $600 beginning at the end of yea r 3 and ending at the end of year 12? The interest rate is 20% compounded annually. 12 $600 44 4 4 44444 QUESTION 10 What single payment at the end of year 8 is equivalent to an equal annual series of payments Of $600 beginning at the end of yea r3 and ending at the end of year 12? The interest rate is 20% compounded annually $600 12 OA S4,347 OB 55216 OC S7511 OD S0.250
An IT man buys boxes of diskettes and is to pay for it by making 30 monthly payments of P50.00 each, with interest on the unpaid balance at 6% interest rate. What is the purchase price? O a. P1,039.00 O b. P1,930.00 O c. P1,390.00 O d. P1,309.00
An annuity offers a payment of $5000 at the beginning of every three months for twenty years. Interest is compounded monthly at a nominal rate of 8.8%, and the first payment is deferred for 3 years. Determine the amount that you would pay for this annuity today. O a. $ 145 573.01 O b. $ 146 563.01 O c. $ 146 939.01 O d. $ 146 585.01 O e. $ 143 982.01
6. You are given an annuity payable continuously at the rate of • $1000 per year while both (40) and (50) are alive • $600 per year while one of (40) and (50) is alive and the other is dead The present value of this annuity is $9400. A second annuity payable continuously at the rate of $1200 per ycar while either of them is alive has present value $13200. What is the present value of an annuity payable continuously at the rate of $1000 per year while one of (40) and (50) is alive and the other is dead?