Present value calculations showexplain your work

Finance

Present Value Calculations (Show/Explain your work - likely you will use some technology (app, Excel, calculator, ) let me know what it was used

A. Dr. Ima N. Pain has a patient that had $5,000 in services done. The customer cannot pay until a year from now. The Doctor earns a 6% return on her money. How much should she charge the patient if the patient says he will pay the bill in one year?

B. Dr. Pain has another patient that can only pay $225/month. If he makes 12 monthly payments at the end of each month, and Dr. Pain invests them at 6% annually, what is the present value of the payments? The payments will start one month from today.

C. Dr. Pain realizes that his 6% return is a monthly compounded rate. What is the effective annual rate (EAR)?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91789047

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