Suppose That You Are Considering an Investment That Will Pay

question 65

Multiple Choice

Suppose that you are considering an investment that will pay you $4000 per year for the next five years.The appropriate rate of interest is 5%.You want to know the present value of the cash flows from this investment.To solve this problem in Microsoft Excel,you would use which of the following excel formulas?

• A)=PV(.05,5,4000,0,0)
• B)=PV(.05,5,4000,0,1)
• C)=PV(5,.05,4000,0)
• D)=PV(5,5,4000,0)

Calculate and solve complex mathematical expressions including parentheses and exponents.

Convert mixed numbers to their decimal and percent equivalents.

Convert fractions to decimal and percent equivalents.

Understand and apply basic principles of time value of money in financial calculations involving simple interest, compound interest, and effective rate calculations.

---

Definitions:

Wall Street Investors

refers to individuals or entities engaging in the purchase and sale of financial instruments such as stocks, bonds, and other securities within the financial markets based in the Wall Street area of New York City.

Homestead Act

A United States federal law passed in 1862 that allowed American adults to claim 160 acres of public land after living on and cultivating it for five years.

Southern Opposition

Resistance or dissent specific to the southern region of the United States, often in the context of historical events like the Civil War, civil rights movement, or political ideologies.

Secession

The act of withdrawing formally from membership in a federation or body, especially a political state; famously exemplified by the Southern states' secession from the United States, which precipitated the American Civil War.