(Answered) Suppose the interest rate is 39 anbsphavingnbsp500nbsptoday

Finance

Suppose the interest rate is 3.9 %

a. Having $500 today is equivalent to having what amount in one? year?

b. Having $ 500 in one year is equivalent to having what amount? today?

c. Which would you? prefer, $500 in one? year? Does your answer depend on when you need the? money? Why or why? not?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M93108503
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

We have the following investments in our

We have the following investments in our portfolio: Investment Amount Expected Return Beta A Stock $2,000 ...

Please show formula and explanationyou have decided to

Please show formula and explanation You have decided to place $553 in equal deposits every month at the beginning of the month into a savings account earning 10.62 percent per year, compounded monthly for the next 13 yea ...

You borrow 165000 to buy a house the mortgage rate is 40

You borrow $165,000 to buy a house. The mortgage rate is 4.0 percent and the loan period is 30 years. Payments are made monthly. If you pay the mortgage according to the loan agreement, how much total interest will you p ...

Question - a company currently pays a dividend of 4 per

Question - A company currently pays a dividend of $4 per share (D0 = $4). It is estimated that the company's dividend will grow at a rate of 19% per year for the next 2 years, then at a constant rate of 7% thereafter. Th ...

Quality home made ice cream has plans to pay decreasing

Quality Home Made Ice Cream has plans to pay decreasing annual dividends of $1.50, $1.25, and $1.00 over the next three years, respectively. After that, the firm will increase the dividend by 4% each year. What is the va ...

Piping hot food services is evaluating a project that costs

Piping Hot Food Services is evaluating a project that costs $75,000. The project is expected to generate after-tax cash flows equal to $26,000 per year for four years. Their required rate of return is 14%. What is the ne ...

Question - discuss common stock valuation and the required

Question - Discuss common stock valuation and the required assumption(s) for zero growth. Relate this discussion to a real-world problem.

Grant technologies needs 300000 to pay its supplier grants

Grant Technologies needs $300,000 to pay its supplier. Grant's bank is offering a 210-day simple interest loan with a quoted interest rate of 11 percent and a 20 percent compensating balance requirement. Assuming there a ...

What is the irr and mirr for a project that costs 5500 and

What is the IRR and MIRR for a project that costs $5,500 and is expected to generate $1,800 per year for the next four years? If the firms required rate of return is 8%, should the project be accepted?

What factors would influence the decision to sell a

What factors would influence the decision to sell a component of the business to raise capital to facilitate growth of another component of the business?

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 Basic Finance Expert