Sarah Is Considering Lending an Amount of $45,000 to Her

question 100

Essay

Sarah is considering lending an amount of $45,000 to her friend who promises to return $60,000 at the end of 10 years.What is the net present value of Sarah's investment? Is it worthwhile undertaking this investment? Assume that the market rate of interest is 6 percent.

---

Definitions:

To-Do List

A list of tasks that need to be completed, typically organized in order of priority.

Outlook Item

An Outlook item refers to any type of data stored in Microsoft Outlook, including emails, calendar events, contacts, tasks, and notes.

Attach A File

The process of adding a file to an email message or document.

Tasks List

A feature in project management and productivity software that organizes and tracks tasks and activities.