In: Finance
An investor is considering the following opportunity: He will put capital into a start-up company today. He will not receive any cash flows from the investment until end of the 5th year. At that point, he will receive 10.00 years of $14,100.00 per year. If his discount rate on this investment is 18.00%, what is the value of this opportunity today?
A family takes out a mortgage for $278,000.00 from the local bank. The loan is for 30 years of monthly payments at a 4.92% APR (monthly compounding). What will the family’s balance be on the mortgage after 10.00 years?