Homework Help Question & Answers

Your grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer u

Your grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.


a-1. Assuming you could earn 6 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)


1250 ->    Present value = _________
  

a-2. If you could earn 7 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
  


1250 -> Present value = __________



0 0
Add a comment
Answer

This Homework Help Question: "Your grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer u" No answers yet.

Be the First!

Request Answer

Request answer!

We need 10 more requests to produce the answer to this homework help question. Share with your friends to get the answer faster!

0 /10 have requested the answer to this homework help question.

Request! (Login Required) Share with friends


Once 10 people have made a request, the answer to this question will be available in 1-2 days.
All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Your grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer u
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coin

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Your grandfather has offered you a choice of one of the three following alternatives:

    Your grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer uYour grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate...

  • Your grandfather has offered you a choice of one of the three following alternatives: $10,500 now...

    Your grandfather has offered you a choice of one of the three following alternatives: $10,500 now $5,000 a year for nine years or $61,000 at the end of nine years. Use Appendix Band Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. 0-1. Assuming you could eam 7 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Present...

  • Your grandfather has offered you a choice of one of the three following alternatives: $7,500 now:...

    Your grandfather has offered you a choice of one of the three following alternatives: $7,500 now: $2.200 a year for nine years; or $31,000 at the formula and financial calculator methods. e years. Use Appendix 8 and Appendix D for an approximate answer, but calculate your final answer using a-1. Assuming you coul calculations. Round your final answers to 2 decimal places.) d earn 10 percent annually, compute the present value of each alternative: (Do not round intermediate Present Value...

  • 9 Problems Your grandfather has offered you a choice of one of the three following alternatives....

    9 Problems Your grandfather has offered you a choice of one of the three following alternatives. $13,500 now $6,500 a year for nine years, or 591.000 at the end of nine years. Use Appendix Band Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods -1. Assuming you could earn 9 percent annually, compute the present value of each alternative (Do not round Intermediate calculations. Round your final answers to 2 decimal...

  • 1. (15 points) Your grandfather has offered you a choice of one of the theefollowing alternatives:...

    1. (15 points) Your grandfather has offered you a choice of one of the theefollowing alternatives: $4500 now; $1000 at the beginning of each period for six years, or $8000 at the end of six years. Assuming you could earn 12% annually. Required: (1) Calculate the Present Value of each choice (2) State which alternative should you choose?

  • Your rich godfather has offered you a choice of one of the three following alternatives: $10,000 now; $2,000 a year for eight years; or $24,000 at the end of eight years

    Your rich godfather has offered you a choice of one of the three following alternatives: $10,000 now; $2,000 a year for eight years; or $24,000 at the end of eight years. Assuming you could earn 11 percent annually, which alternative should you choose? If you could earn 12 percent annually, would you still choose the same alternative?

  • What is the present value of the following? Use Appendix B as an approximate answer, but...

    What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $8,300 in 13 years at 5 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value b. $18,600 in 3 years at 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value c. $28,100 in 9 years at 8...

  • What is the present value of the following? Use Appendix B as an approximate answer, but...

    What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $8,700 in 9 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value b. $17,800 in 4 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value C. $27,500 in 12 years at 11...

  • How much would you have to Invest today to receive the following? Use Appendix B and Appendix D for an approximate ans...

    How much would you have to Invest today to receive the following? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. $7,800 each year for 20 years at 6 percent. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) Present value 553,000 each year for 25 years at 12 percent. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.)...

  • What is the present value of the following? Use Appendix B as an approximate answer, but...

    What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $7,800 in 6 years at 10 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)    b. $16,500 in 3 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)    c. $25,700 in 9 years at 8 percent? (Do...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
Active Questions
ADVERTISEMENT