What is the net present value of a project with the following cash flows if the discount rate is 15 percent? The project costs $
1 answer:
You might be interested in
The amount of 3000 will have to be deposited to earn $90 of interest for 8 months, if money is deposited in a bank that pay's simple interest of 4.5%.
Explanation:
The given is,
Simple interest of 4.5 %
Earn $90 of interest for 8 months
Step:1
Formula to calculate the simple interest method,
...................................(1)
Where,
F - Future amount
P - Initial investment
i - Rate of interest
N - Number of years
From given,
i - 4.5%
Let, X - Initial investment, P = X
F = P + Interest amount
F = X + 90
From the equation (1),
(∵ N = 8 months = = 0.667 year )
= 3000
P = X = $ 3000
From the X value.
F = P + 90
= 3000 + 90
F = $ 3090
Result:
The amount of 3000 will have to be deposited to earn $90 of interest for 8 months, if money is deposited in a bank that pay's simple interest of 4.5%.