6. If you expect to receive a gift of $50,000 six years from now, the present wo

Question

6. If you expect to receive a gift of $50,000 six years from now, the present worth of the gift at a real interest rate of 4% per year and an inflation rte of 3% per year is closest to: A. $37,200 B. $33,100 C. $29,800 D. $27,600 Formula used: What is the discounted payback period for a business that has an income of $5000 per year and expenses of $1 500 per year if your initial investment was $23,800 and your MARR is 10% per year? A. Less than 6 years B. 8 years C. 12 years D. 17 years Interest formula used: For a market interest rate of 16% per year, compounded quarterly, and an inflation rate of 2% per quarter, the effective quarterly real interest rate is closest to? A. 2% B. 3% C. 4% D. 6% Formula used

Explanation / Answer

6.

nominal rate=3%+4%=7.12%

present worth=50000/(1+7.12%)^6=33094

so closet answer is 33100

the above is the answer

we do only one question when there are calculations as per Chegg rule.

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