Assigment 4

Assigment 4 - Finance 300 Homework 4 Time Value of Money Name 1 Future Value of a Single Cash Flow or Lump Sum K-Fed needs your financial advice He

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Finance 300 Homework # 4 – Time Value of Money Name__________________________________ 1. Future Value of a Single Cash Flow or Lump Sum K-Fed needs your financial advice. He just got a $100,000 divorce settlement and would like to invest it. You tell him that he should put his money into a Certificate of Deposit (CD) that pays 10% interest per year. Thus, How much should K-Fed obtain at the end of year 5? 2. Present Value of a Single Cash Flow or Lump Sum Beavis is your best friend. He was recently offered an investment that would pay him $2,000 at the end of year 4. The interest rate quoted was 9% per year. What should be the most Beavis should pay for this investment, in other words, what is the present value of this investment? After you figured out the PV of this investment, Beavis tells you that the price of this investment is $3,500. Do you recommend that he buys this investment? Explain (Note : you don’t need calculations here)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3. Finding Interest Napoleon has been planning a hunting trip to Africa for years. Five years from today, he
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/16/2009 for the course FIN 300 taught by Professor Olander during the Spring '08 term at ASU.

Page1 / 3

Assigment 4 - Finance 300 Homework 4 Time Value of Money Name 1 Future Value of a Single Cash Flow or Lump Sum K-Fed needs your financial advice He

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online