BUSI 1003 Lecture Notes - Lecture 6: Anti-Satellite Weapon, Promissory Note
11 Jun 2017
School
Department
Course
Professor
Document Summary
1. 377031208: nominal annual rate of interest 16, compounding periods per year is 365, periodic rate of interest 0. 000438356, compounding periods in the term 730, compounding factor (1+0. 000438) ^730, numerical value of the compounding factor 1. 377703. 2, pv=5000 i=. 0775/2= . 038750, n= 70/12*2 = 11. 6667. Pv =8000 i= 10. 8% compounded annually, n=7 5/12 = 7. 416667. Value of the debt in the future ,116. 96. Accumulated value $ 221. 36 for one and a half years. ,544. 10 7. 50% 0. 01875 4 7 1/6 i=j/m m time periodn. Accumulated value of her account december1 2027 will be ,146. 06. The sum of money needed is ,067. 69 j. Present value of the ,000 in 3 years @ 4% compounded annually is ,113. 87. Option 2 is a better choice since the present value is ,114. 87 is more than option 1 offer of. Present value of the promissory note maturing in 15yrs with a future value is . 61. = ,366. 52 discounted over 5 years (b) 2,
