Description of this paper

Loading

You win a scratch off lottery ticket that promises to pay an-(Answered)

Description

Instant Solution ? Click "Buy button" to Download the solution File


Question

You win a scratch off lottery ticket that promises to pay an initial payment of 10,000 this year and grow at a rate of 5% forever. If the discount rate is 8%, what is the present value of this investment?

$350,000.00

$400,000.00

$300,000.00

$500,000.00

None of the above

Suppose that you buy a car which requires that you make the first payment on the day that you buy it in order to drive it off the lot. The payments are $505 per month. What was the sticker price of the car if the monthly interest rate is 1.5% (periodic rate) and it takes 4 years (48 months) to pay off the car?

$17,449.36

$17,191.49

$35,130.44

$35,657.39

None of the above



You win a scratch off lottery ticket that promises to pay an initial payment of 10,000 this year

 

and grow at a rate of 5% forever. If the discount rate is 8%, what is the present value of this

 

investment?

 

$350,000.00

 

$400,000.00

 

$300,000.00

 

$500,000.00

 

None of the

 

above

 

Suppose that you buy a car which requires that you make the first payment on the day that you

 

buy it in order to drive it off the lot. The payments are $505 per month. What was the sticker

 

price of the car if the monthly interest rate is 1.5% (periodic rate) and it takes 4 years (48

 

months) to pay off the car?

 

$17,449.36

 

$17,191.49

 

$35,130.44

 

$35,657.39

 

None of the

 

above

 


 

 

Paper#9210229 | Written in 27-Jul-2016

Price : $19
SiteLock