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Topic: Business
Number of pages / Number of words: 4 / 971
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If a 7 percent interest rate is applied, what is the current value of the future payments?

Here we have to find out the present value of annuity and by applying y the above formulae the value is $77417.27

Finding the capital recovery annuity

The compounding value technique is also used to find the capital recovery annuity

Example:

To help you get through college, your parents made a deposit of $25,000 into a bank account paying 8% interest...


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Starting next year, you plan to withdraw equal amounts for the account at the end of each of the next four years. What is the most you can withdraw annually?

Here we have to find capital recovery annuity

A=P*((r*(1+r)^n)/(1+r)^n-1)

P=present value, A= Annuity r= rate of interest n=duration A=$7548

OPPORTUNITY COST PRINCIPLE

The opportunity cost or alternative costs are the returns from the second best use of the organization's resources or here in this case the individual's capability...


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General points of the essay

10 YR Treasury risk-free rate of interest, krf. A Present Career, Carrer Interest, and the Value of aa College Education Estimate of the risk-free rate pf interest ("U.S. 10-year Treasury" bond rate Exchange Rate and Balance of Payments Goodrich Rabobank Interest Rate Swap Interest Rate Forecasting using Regression Analysis Interest Rate Swap Interest Rate Microfinance and Rate of Interest Zero Interest Rate Floor Past Present and Future Present Career, Carrer Interest, and the Value of a College Education What is history? What is the future? What is the present? Is history a valid guide to the future? Past, Present And Future Dollar General can continue growing at its current rate?

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