How many dollars do you need to deposit today in a bank that pays you an interest rate of 6.54% per year if you want to have accumulated $10,000 ten years from today?
You have a small tree in your backyard that you are wondering about how tall it will be in a ten-year period. You consult with a friend who happens to be an arborist and she tells you this species of trees in your soil type will grow by an average of 15% per year. The tree is 5 feet tall now. How tall would your tree be in ten years for now?
Calculate the future value at the end of year 4 of the following series of bank deposits that earn 4% interest rate per year. CF1 = $500; CF2 = $648, FC3 = $820; CF4 = $1,290.
Calculate the present value of the following series of bank deposits that earn 4% interest rate per year. CF1 = $500; CF2 = $648, FC3 = $820; CF4 = $1,290.
A financial asset whose required rate of return is 12% promises the following series of future cash flows: CF1 = $1,250; CF2 = $2,360; CF3 = $4,500; CF4 = $27,500. How much would you be willing to pay to acquire the asset today?