Economics An inventor expects to receive $75,000 per year from royalties on a 15 patent for 12years.If the inventor’s interest rate is 9% and the inflation rate is 4%, determine the present value of the cash flows.
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Economics
An inventor expects to receive $75,000 per year from royalties on a 15 patent for 12years.If the inventor’s interest rate is 9% and the inflation rate is 4%, determine the
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- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityIf you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%
- X-person has committed to a payment that needs to pay BD 80,000 every year at the end of each next eleven years. What will be the future amount of Ahmed if it were to instead settle the claim immediately with a single payment, with an interest rate of 6%?solve the problem showing cash flow, and final answer using a suitable formula.Engineering Economics (Annuity) An ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an annuity paying an amount at the beginning of each month for 15 years. Money is worth 10% compounded annually. Determine the Future value of the payment and the amount being paid at the beginning of each month for 15 years? note: include cash flow diagram and complete/readable solution for this problem, this is 100% upvote guaranteed3. You wish to purchase a land worth P750,000 and the seller requires 20% downpayment. Then you will loan the balance from a bank that charge 6% annual interest rate to be paid for 1 year. a. How much is the monthly amortization? b. How much is the total interest?
- Assume that you are going to receive $468 yearly until the day of your retirement (15 years from now). What is the future value (the day of your retirement) of all these cash flows if the interest rate is 8.69%?Answer followings (a) Suppose you wish to borrow $60,000 at an annually compounded interest rate of 16% for a period of 14 years. What would be the annual repayment? (b) You wish to invest $30,000 today in order to save $60,000 for a deposit to buy a house in several years’ time.How many years must you invest in order to have a future value of $60,000 if the interest rate is 12%? (c) What is the effective annual rate of a savings account with an annual interest rate of 5.9% compounded quarterly?You are expecting to receive a payment of $5969 in 2 years and $9869 in 6 years. If the interest rate is 14.61%, how much are these cash flows worth today? Answer:
- a) What’s the rate of return you would earn if you paid $1,500 for a perpetuity thatpays $105 per year? b) At a rate of 8%, what is the present value of the following cash flow stream?$0 atTime 0; $100 at the end of Year 1; $300 at the end of Year 2; $0 at the end of Year 3;and $500 at the end of Year 4?What is the future value of an annuity due if your required return is 10%, and payments are Php1,000 for 10 years? A. Php15,937 B. Php16,145 C. Php17,531 D. Php11,000Consider an investment which pays $3,000 at the end of year 1, year 2, and year 3. In year4, the investment will pay $4,000 and this payment will grow by 2% each year forever. If theappropriate interest rate is 9%, what is this investment worth today? (Show Using BA II Plus or By Hand)