1 you have won a lawsuit and the court has arranged for the, Ask an Expert

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1. You have won a lawsuit and the court has arranged for the defendant to pay you $7,500 per year for the next three years. If the appropriate discount rate is 8 percent, what is the value of your settlement today?

2. Last year, you borrowed money from Cousin Vinnie and he agreed to a 25 percent interest rate per year. If you borrowed $250, and know you have to pay him in full exactly $488.28 (and make no other payments to him), what will be the total length of the loan?

3. An investment offers a return of 1 percent every month if you deposit a minimum of $20,000. If you make the minimum deposit today and do not make any additional deposits, how much will you have in your account in 20 years?

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Financial Management, Finance

Category:- Financial Management
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