A ceo has signed a deferred compensation agreement that


Question: Need actually answers these are financial questions that need to be exact

1. Assume you have borrowed $10,000 and you plan on paying $197.36 each month towards your debt. The interest rate on the credit card loan is 21.94% and the interest is compounded monthly. How long will it take you to pay off your card, assuming your payments remain constant?

2. If you invest $1000 today, how much will you have in 15 years if your 15-year Certificate of Deposit (CD) pays 5% annual interest, compounded monthly?

3. A CEO has signed a deferred compensation agreement that will pay her $10 million in 10 years time. If the appropriate discount rate is 8%, what is the present value of her deferred compensation in today's dollars? (Assume annual compounding).

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Finance Basics: A ceo has signed a deferred compensation agreement that
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