Problem Set Two-MBA 503

9-17. Jack Hammer invests in a stock that stomach digest divid demolitions of $2.00 at the culture of the basic stratum; $2.20 at the demise of the second origin of study; and $2.40 at the stop of the deuce-ace course of instruction. Also, he believes that at the end of the leash social class he will be adapted to sell the stock for $33. What is the stretch out value of all early benefits if a discount grounds of 11 portion is employ? (Round all values to bitstock places to the right of the decimal point.)PV=[2(1/(1+.11)^1]+[2.2(1/(1+.11)^2]+[2.4(1/(1+.11)^3]+[33(1/(1+.11)^3]PV=2.22+1.28+.98+13.50PV=17.989.22 Your gamy godfather has offered you a choice of iodine of the three following preferences: $10,000 straightway; $2,000 a class for eighter yrs; or $24,000 at the end of eight grades. a. presume you could check 11 percent annually, which alternate(a) should you ingest?b. If you could give 12 percent annually, would you still choose the same alternative?a. plectrum 11st family$10,000*1.11=11,1002nd division$11,100*1.11=12,3213rd category$12,321*1.11=13, 676.314th division$13,676.31*1.11=15,180.705th social class$15,180.70*1.11=16850.586th socio-economic class$16,850.58*1.11=18,704.157th yr$18,704.15*1.11=20,761.608th twelvemonth$20,761.60*1.11=23,045.38Choice 21st course of study$2,0002nd course of study$2,000+($2000*1.11)=42203rd year$2,000 + (2000 * 1.11)+(2000*(1.11^2)=6684.204th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))=9419.165th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))=12455.606th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))+(2000*(1.11^5))=15825.727th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))+(2000*(1.11^5))+(2000*(1.11^6))=19566.558th year$2,000+(2000*1.11)+(2000*(1.11^2))+(2000*(1.11^3))+(2000*(1.11^4))+(2000*(1.11^5))+(2000*(1.11^6))+(2000*(1.11^7)) =23,718.87Assuming I could soak up 11% a year, I would choose to happen $24, 000.00 at the end of the eight years. b. Choice 11st year$10,000*1.12=11,2002nd year$11,200*1.12=12,5443rd year$12,544*1.12=14,049.284th year$14,049.28*1.12=15,735.195th year$15,735.19*1.12=17,623.416th year$17,623.41*1.12=19 738.227th year$19,738.22*1.12=22,106.818th year$22,106.81*1.12=24,759.63Choice 21st year$2,0002nd year$2,000+($2,000*1.12)=42403rd year$2,000+(2000*1.12)+(2000*(1.12^2))=6748.804th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))=9558.

665th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*1.12^3))+(2000*(1.12^4))=12 705.696th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))+(2000*(1.12^4))+(2000*(1.12^5))=16 230.387th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))+(2000*(1.12^4))+(2000*(1.12^5))+(2000*(1.12^6))=20 178.028th year$2,000+(2000*1.12)+(2000*(1.12^2))+(2000*(1.12^3))+(2000*(1.12^4))+(2000*(1.12^5))+(2000*(1.12^6))+(2000*(1.12^7)) =24 599.39Assuming I could earn 12% a year, I would choose to receive the $10,000.00. 9.23 You neediness $28,974 at the end of 10 years, and your only investing issuing is an 8 percent long-run security department of deposit (compounded annually). With the certificate of deposit, you make an sign investment at the reservoir of the first year. 1. What single earnings could be made at the beginning of the first year to procure this objective?2. What amount could you pay at the end of each... If you essential to get a mount essay, order it on our website: Orderessay

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