Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. asap please a local bank offers the following de

ASAP please A local bank offers the following deal: If you pay the...

90.2K

Verified Solution

Question

Finance

ASAP please

image

A local bank offers the following deal: If you pay the bank $100 a year for 10 years (the first payment begins today and there are totally 10 payments), the bank will pay you $100 a year forever (the first payment will start at the end of the 10th year). If the interest rate available on other deposits is 6 percent, is this a good deal? What is the present value of your profit or loss from this deal? O a. No. The present value of my loss is $194.65. O b. Yes. The present value of my profit is $206.33. c. Yes. The present value of my profit is $100. d. Yes. The present value of my profit is $194.65. Clear my choice

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students