You are negotiating for the terms of a legal settlement, and your opponent
1. You are negotiating for the terms of a legal settlement, and your opponentAc€?cs attorney has presented you with the following alternative settlement alternatives:
a. $38,000 today in one lump sum.
b. $50,000 to be paid to you in five equal payments of $10,000 at the end of each of the next five years.
c. Five equal annual installments of $9,100 each, beginning today.
If your discount rate is 10%, what is the present value of each of the alternatives and which alternative would you choose?
2. If you deposit $100 in the bank today at an annual rate of 5.5% compounded annually, how long will it take to double In value?
3. Your Aunt Matilda Mae makes you the following offer: $15,000 upon undergraduate graduation in one year or $18,000 upon MBA graduation in 3 years. Which offer should you take if current rates are 14%?
Answers
Status NEW
Posted 07 Jun 2017 08:06 AM
My Price 8.00
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file 1496824554-Answer.docx preview (172 words )
1-----------. Y-----------ou -----------are----------- ne-----------got-----------iat-----------ing----------- fo-----------r t-----------he -----------ter-----------ms -----------of -----------a l-----------ega-----------l s-----------ett-----------lem-----------ent-----------, a-----------nd -----------you-----------r o-----------ppo-----------nen-----------tAc-----------€-----------?cs----------- at-----------tor-----------ney----------- ha-----------s p-----------res-----------ent-----------ed -----------you----------- wi-----------th -----------the----------- fo-----------llo-----------win-----------g a-----------lte-----------rna-----------tiv-----------e s-----------ett-----------lem-----------ent----------- al-----------ter-----------nat-----------ive-----------s: ----------- a.----------- $3-----------8,0-----------00 -----------tod-----------ay -----------in -----------one----------- lu-----------mp -----------sum-----------. -----------b. -----------$50-----------,00-----------0 t-----------o b-----------e p-----------aid----------- to----------- yo-----------u i-----------n f-----------ive----------- eq-----------ual----------- pa-----------yme-----------nts----------- of----------- $1-----------0,0-----------00 -----------at -----------the----------- en-----------d o-----------f e-----------ach----------- of----------- th-----------e n-----------ext----------- fi-----------ve -----------yea-----------rs.----------- c-----------. F-----------ive----------- eq-----------ual----------- an-----------nua-----------l i-----------nst-----------all-----------men-----------ts -----------of -----------$9,-----------100----------- ea-----------ch,----------- be-----------gin-----------nin-----------g t-----------oda-----------y. ----------- If----------- yo-----------ur -----------dis-----------cou-----------nt -----------rat-----------e i-----------s 1-----------0%,----------- wh-----------at -----------is -----------the----------- pr-----------ese-----------nt
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