Carrie Perry will receive $22,000 a year for the next 20 years as payment for a song she has just written. If a present 7.94% percent discount rate is applied, at what minimum price can she sell her right? Choose the nearest value. Multiple Choice $750,000 $800,000 $1 million $1.25 million
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Carrie Perry will receive $22,000 a year for the next 20 years as payment for a song she has just written. If a present 7.94% percent discount rate is applied, at what minimum price can she sell her right? Choose the nearest value. Multiple Choice $750,000 $800,000 $1 million $1.25 million
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- You are scheduled to receive $10,000 in three years. When you receive it, you will invest it for six years at 7.2 percent per year. How much will you have in nine years? (hint: draw a timeline) Multiple Choice $18,696.19 $17,290.61 $13,788.43 $15,176.40 $16,611.93Check my work Carrie Tune will receive $27750 for the next 5 years as a payment for a new song she has written. Use Apnendix D for an approximate answer, but calculate your final answer using the formula and financial caiculator methods o. What is the present value of these payments if the discount rate is 7 percent? (Do not round intermediate calculations. Round your final onswer to 2 decimal places.) 17. Present value b. Should she be willing to sell out her future rights now for $161.000? O Yes O NoYou are scheduled to receive $45,000 in two years. When you receive it, you will invest it for 8 more years at 6 percent per year. How much will you have in 10 years? Multiple Choice $80,588.15 $75,309.32 $68,137.01 $51,341.32 $71,723.16
- Maddie buys a new apartment for 500,000 at the beginning of 2020. At the end of 2020 an identical new apartment is selling for $ 550,000, reflecting the rate of inflation. The nominal interest rate in 2020 is 5 percent and the physical depreciation rate on the apartment is 10 percent. What is the annual user cost in percent to Maddie from purchasing the apartment? Select one: a. -10 percent b. 15 percent c. 6 percent d. -5 percent e. 5 percentThe winner of a $10,000,000 prize has the following payment choices. If the interest rate is 10%, which choice is best? Select one: a. $3,000,000 per year for 12 years b. $2,000,000 per year for 50 years c. $10,000,000 now d. $55,000,000 in 10 years e. All of choices are the sameTB MC Qu. 09-10 Sharon Smith will receive... Sharon Smith will receive $1.23 million in 30 years. The discount rate is 9%. As an alternative, she can receive $92,250 today. Which should she choose? Use Appendix B to calculate the answer. Multiple Choice the $1.23 million dollars in 30 years. O $92,250 today. O she should be indifferent. need more information.
- You intend to endow a scholarship that pays $5,000 every 6 months, starting 6 months from now. If the appropriate discount rate is 3% per 6-month period, how much money will you have to donate ← today to endow the scholarship? You will need to donate $ (Round to the nearest dollar.) CITYou are offered $100,000 today or $300,000 in 13 years. Assuming that you can earn 11 percent on your money, which should you choose? Question content area bottom Part 1 If you are offered $300,000 in 13 years and you can earn 11 percent on your money, what is the present value of $300,000?URE ic Gail Trevino expects to receive a $580,000 cash benefit when she retires seven years from today. Ms. Trevino's employer has offered an early retirement incentive by agreeing to pay her $310,000 today if she agrees to retire immediately. Ms. Trevino desires to earn a rate of return of 10 percent. (PV of $1& and PVA of $1) Note: Use appropriate factor(s) from the tables provided. raw Required a. Calculate the present value of the $580,000 future cash benefit. Assuming that the retirement benefit is the only consideration in making the retirement decision, should Ms. Trevino accept her employer's offer? Note: Round your final answer to the nearest whole dollar value. Present value Should Ms. Trevino accept the offer?
- You are thinking about purchasing an investment from Get-Rich-Quick Investmemnt company. If you buy the investment, you will receive $50 every month for five(5)years. Payment will be made at the end of each month. If your required rate of return is 9% how much should you be willing to pay for this investment? Group of answer choices $4,632.87 $2,735.25 $2,525.10 $2,408.67Your investment advisor wants you to purchase an annuity that will pay you $25,000 per year for 10 years. If you require a 7% return, what is the most you should pay for this investment? Group of answer choices $201,000 $175,590 $225,682 $ 49,179 $250,000Carrie Tune will receive $30,800 for the next 10 years as a payment for a new song she has written. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. What is the present value of these payments if the discount rate is 16 percent? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Present value b. Should she be willing to sell out her future rights now for $202,000? Yes O No