Weston Inc. just agreed to pay $8,000 today, $10,000 in one year, and $15,000 in two years to a landowner to explore for, but not extract, valuable minerals
If the landowner invests the money at a rate of 5.5% compounded annually, what is the investment worth two years from today?
What will be an ideal response?
Answer: FV = Σ(PV × (1 + r)n) = $8,000 × (1.055)2 + $10,000 × (1.055)1 + $15,000 × (1.055)0 = $34,454.20.
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All else the same, the lower the interest rate a company pays on its borrowing:
a) the lower its coverage ratio and the lower its net income b) the lower its coverage ratio and the greater its net income c) the higher its coverage ratio and the lower its net income d) the higher its coverage ratio and the greater its net income
Using the k-nearest neighbor machine learning algorithm for classification, larger values of k
A) sharpen the distinction between classes. B) reduce the effect of noise on the classification. C) increase the effect of noise on the classification. D) do not change the effect of noise on the classification.