Question: a suppose that you invest 10000 each year for 10...
a. Suppose that you invest $10000 each year for 10 years and that you expect to earn an interest rate of 5%? How much money should you have in 30 years? Show all work.
b. Diane is considering the purchase of a lease that will allow him to operate a restaurant at the mall for a period of 3 years. The lease will cost $22,000 annually along with monthly operation costs of 6,000. She anticipates monthly revenues of $20,000. Calculate the PV of the expected profits of the investment? Assume i = 0.043.
Note: You need to get annual profit and then calculate PV.