A person you trust foresees the need for a loan and, Ask an Expert

Economics

A person you trust foresees the need for a loan and suggests that you loan them $2,000 at the end of year 1, $1,000 at the end of year 2, nothing in year 3, and then they will pay you $1,000 in year 4, $2,000 in year 5, and $3,000 in year 6. They note that you will pay out a total of $6,000 to them, allowing you to "double your money." If you are able to make 12% per year on your investments, determine the present worth of this series of cash flows.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91953798

Have any Question?Write your Review or question?

Related Questions in Business Economics

1 what is gaap2 what is an audit and why are audits

1. What is GAAP? 2. What is an audit and why are audits performed? 3. What are the three main profibability ratios, and how is each calculated? 4. What is the value of an income statment?

A firm has hired you as a consultant this firm is perfectly

A firm has hired you as a consultant. This firm is perfectly competitive and has no control over price. This firm is selling 10,000 units at a price of $4. Total costs are $30,000. Total variable costs are $25,000. They ...

Researchers at a university decided to test the hypothesis

Researchers at a University decided to test the hypothesis that restaurant servers who squat to the level of their customers would receive a larger tip. In the experiment, the waiter would flip a coin to determine whethe ...

If average total costs are 1683 at 6 units of output what

If Average Total Costs are 16.83 at 6 units of output, what are Total Costs?

A banks loan officer rates applicants for credit the

A banks loan officer rates applicants for credit. The ratings are normally distributed with a mean of 200 and a standard deviation of 50. If an applicant is randomly selected, find the probability of a rating that is bet ...

Consider the labor market of the telecom industry is

Consider the labor market of the telecom industry is originally at an equilibrium level E0 and w0. Assume that now the companies offer each employee an iPhone as employment benefit every year. The firms can get iPhone at ...

A certain process is known to produce non-conforming items

A certain process is known to produce non-conforming items 20% of the time. A char- acteristic of the units produced by this process are currently being monitored for quality. Samples of size 15 are selected, and each it ...

Mathew and susan are both optimizing consumers in the

Mathew and Susan are both optimizing consumers in the markets for shirts and hats, where they pay $100 for a shirt and $50 for a hat. Matthew buys 4 shirts and 16 hats, while Susan buys 6 shirts and 12 hats. From this in ...

Please discuss the followingas demand increased for these

Please discuss the following: As demand increased for these mortgage backed securities, lenders reacted by relaxing their approval standards to increase production. No longer were "all" borrowers required to document the ...

Why the use of nash equilibrium is a solution concept in

Why the use of Nash equilibrium is a solution concept in games? Please give me an detailed explain.

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert