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Gnesinka [82]
3 years ago
5

If $ 9 comma 000 is invested in a certain business at the start of the​ year, the investor will receive $ 2 comma 700 at the end

of each of the next four years. What is the present value of this business opportunity if the interest rate is 6​% per​ year?
Business
1 answer:
Marianna [84]3 years ago
4 0

Answer:

PV= $9,355.78

Explanation:

Giving the following information:

If $ 9,000 is invested in a certain business at the start of the​ year, the investor will receive $ 2,700 at the end of each of the next four years.

Interest rate= 6%.

First, we need to find the final value

FV= {A*[(1+i)^n-1]}/i

A= payment

FV= {2,700*[(1.06^4)-1]}/0.06= 11,811.46

Now, we calculate the present value:

PV= FV/(1+i)^n

PV= 11,811.46/1.06^4= $9,355.78

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The Hi-Stakes Company

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Which of the following would be an effective approach for encouraging authentic feedback? A. Defend yourself if you disagree wit
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3 years ago
Cachita Haynes works as a currency speculator for Vatic Capital of Los Angeles. Her latest speculative position is to profit fro
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Answer:

Cachita should buy put on yen

Explanation:

Given:

The current spot rate = ¥120.00​/$

in US $/¥ = \frac{\textup{1}}{\textup{120.00}}

or

in US $/¥ = 0.0083

Maturity time = 90 days

                                     Put on Yen                  Call on Yen

Strike Price                     125/$                           125/$

Strike Price in $/¥        0.008                            0.008

Premium                      0.00003/$                0.00046/$

Therefore,

Here the strike price for put on Yen and call on Yen are same

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Answer:

Consider the following explanations

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