Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$5,791.61
Visitor$1,770.00
oosterhoff$1,667.00
Visitor$550.00
Visitor$530.00
Visitor$480.00
Visitor$460.00
Visitor$380.00
Visitor$380.00
321$360.00
Visitor$360.00
Visitor$360.00
fktragedy$350.00
Visitor$350.00
Visitor$350.00
Visitor$350.00
Visitor$340.00
Visitor$340.00
Kyrie Ir...$340.00
Visitor$330.00
 

Question 2  NPV, Annuity

Katya offers to pay you $10 at the end of every year for the next 5 years (t=1,2,3,4,5) if you pay her $50 now (t=0). You can borrow and lend from the bank at an interest rate of 10% pa, given as an effective annual rate.

Ignore credit risk.

Will you or Katya's deal?



Copyright © 2014 Keith Woodward