2. It is desired to have P200,000 two years from now by depositing an initial amount P, plus P50,00 on the 6th month and another P50,000 after 1 year. What would that initial amount be if interest rate is 12% pa compounded monthly?
Q: You are paying $1,500 monthly for 10 years with an the interest rate of 12% compounded continuously,…
A: Future Value Annuity amount (PMT)= $1,500 monthly= $18,000 yearly Time period (n)= 10 years Interest…
Q: What is the present value of £100, growing at 2% per year, to be received every year forever, if the…
A: The present value of a growing perpetuity can be calculated as the sum of all discounted cash flows…
Q: If interest is compounded at 20% per year, how long will it take for P50,000 to accumulate to…
A: Interest rate = 0.20 Initial investment = P50,000 Accumulated value = P86,400 Period = ?…
Q: 1)What is the future value in SEVEN years if you receive $300 in two years and $500 at the end of…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…
A: To calculate the present value we will use the below formula Present value = FV/[1+(r/m)]n*m Where…
Q: How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the…
A: We have the following information: Annuity: $24,000 Rate of Interest: 5%
Q: II. We can make an immediate payment now of Rs 130,000 or pay equal amount of A for the next five…
A: Immediate payment is the payment which will be made at the beginning of an investment or project.…
Q: 1. At what rate must RM50,000 to grow to 406,855 in 15 years compounded annually? Select one: a.…
A: "Since you have posted multiple questions, we have solved the first question for you. To get it…
Q: Bank X pays 12 per cent and compounds interest quarterly. If Rs 200,000 is deposited initially, how…
A: EAR for Bank X rate = 12% compounding frequency = 4 times EAR =(1+rm)m -1 EAR = (1+12%4)4 -1…
Q: If 5000 TL installments are deposited at the end of each year with 3% interest rate in order to save…
A: The number of installments can be calculated with the help of NPER function of Excel
Q: How much will be paid every three months for a loan that amounts to P1 400 500.00 if money is worth…
A: Loan amount = P1,400,500 Interest rate = 518% = 418% = 5.125% Time period = 20
Q: What payment ten years from now is equivalent to P1,000 six years from now if the interest rate in…
A:
Q: What payment ten years from now is equivalent to P1,800 six years from now if the interest is 16%…
A: solution : a) interest rate =16% compounded annually 0 - 1 - 2 - 3 - 4…
Q: What interest rate compounded bi-monthly is needed for an amount of P20,679 to increase to P30,550…
A: Using Excel Function: With Formulas:
Q: Ms. Aay is considering to deposit $600 every six months, and would receive interest at an annual…
A: In the given question, semi-annual deposits of $ 600 are made for next 5 years, wherein first…
Q: 2. If you invest P25,000 at 8% interest compounded annually, approximately how much money will be in…
A: The future value is the compounded value of an amount of deposit. The future value is calculated…
Q: B. A financial company will pay you $70,000 now in exchange for annual payments of $11000 that you…
A: Interest rates The percentage charged over the principal amount by the lender for the money…
Q: 5. If P50,000.00 is deposited each year for 10 years, how much annuity can a person get annually…
A: Annuity means a finite number of payments which are the same in size and made in equal intervals of…
Q: 4. You plan to borrow $5001.00 now and repay it in 25 years as equal annual payments that will be…
A:
Q: What is the value today of a money machine that will pay $4,860.00 per year for 18.00 years? Assume…
A: Present Value=PMT1-1(1+r)nrWhere,PMT=annuity payment made at the end of each periodr=rate of…
Q: f P50,000 if the interest rate is 9% compounded quarterly?
A: Given as, P=50,000 F V=100,000 r=9%=0.09 n=4
Q: What is the future value of: Part a $400 in five years with an interest rate of 5%? Part b…
A: Given, in first case, Present value = $400 Time period = 5 years Interest rate = 5% Given, in second…
Q: Using a 5% annual compound interest rate, what investment today is needed in order to withdraw…
A:
Q: A man wishes to have P2,000,000 20 years from now. If the interest rate is at 8% compounded…
A: Future value required (FV) = P 2,000,000 Period (N) = 20 Years Annual interest rate (R) = 8%
Q: a) How much should you invest at 12% interest today if you want to receive TK. 10,000 at the cnd of…
A: Hi, there, Thanks for posting the question. As per our Q&A honor code, we must answer the first…
Q: If you take out a bank loan of $11500 now, what will the monthly payment be if you have to repay the…
A: Loan Amount = $11,500 Time Period = 5 Years Interest Rate = 9% compounded monthly
Q: 1. Solve for the present value of annuity due for an investor to receive P12,000.00 semi-annu for 6…
A: Present value is based on time value of money . It calculates the present value of the future…
Q: If money is borrowed today with an amount of P50,000.00 and subjected to a 9% compounded quarterly…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: 3. At a certain interest rate compounded semiannually, P5000 will amount to P20000 after 10 years.…
A: Interest Rate- The costs levied on the borrower for assets borrowed from lenders are referred to as…
Q: A sum of $150,000 now at an interest rate of 10% per year compounded semiannually is equivalent to…
A: The present value of money is the discounted value of future cash flows used to determine the…
Q: What is the present value of an ordinary annuity if its value at the end of 10 years is Php 50 000?…
A: Annuity Amount PHP 50,000 Rate of Interest (12% /4) 3% Period (10 Years * 4) 40
Q: 2. What's the present value of $25,000 received after 5 years if the appropriate interest rate is…
A: using the PV function
Q: What is the value today of a money machine that will pay $2,977.00 per year for 15.00 years? Assume…
A: present value of annuity (pva)=A×1-11+rnrpresent value of lump sum =future…
Q: You will deposit $10,000 per year for five years at 9%. Then you will just let themoney sit there…
A: Deposit = 10,000 Interest % =9% Time Period = 5 years Future Value of Deposits = [Deposit *…
Q: d. Calculate the future sum of $1,000, given that it will be held in the bank for 5 years earning an…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: (a)Suppose you expect to receive GH¢ 2,000 per year for the next 22 years except that you will not…
A: The current value of the cash flow or stream of cash flow after discounting is termed as the PV…
Q: Determine the number of the years if a deposit of P905,000 will earn P105,350 if invested at the…
A: Given the deposit amount, the interest rate and the amount of interest, the number of years can be…
Q: t is desired to have P100,000 two ye- m now by depositing P20,000 now a form monthly amounts, the…
A: In this we have to calculate the present value of future value and than calculate the future value.
Q: A man expects to receive P31,655.11 10 years from now. How much should he invests for three…
A: In this we have to calculate the present value of future value and than find out equivalent annual…
Q: 1. What is the future amount of my Php 100, 000 after 5 years if I invest today at a rate of 12 %…
A: Invested amount (X) = Php 100000 n = 5 years Interest rate = 12% Inflation rate = 8% Let the actual…
Q: We can make an immediate payment now of Rs 130,000 or pay equal amount of A for the 1) 2) next five…
A: Annuity- refers to a series of periodic payments made at equal time intervals. This financial…
Q: Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is…
A: We need to use future value of annuity formula to calculate annuity amount after 5 years. Future…
Q: How much money would you have to deposit for five consecutive years starting one year from now if…
A: Future value (FV) = P 50,000 Interest rate (r) = 14% Number of annual deposit (n) = 5 Period after…
Q: 1- How much money should you be willing to pay now for a guaranteed $600 per year for 8 years…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: How much money be invested today in order to withdraw P1500 per year at the end of each year for 8…
A: P 1,500 amount is to be withdrawn at the end of each year for next 8 years and the interest rate is…
Q: at is the present worth and future of P6000 deposited at the end of every month for 4 years if the…
A: The more is compounding more is future value and less is the present value of money due to the fact…
Step by step
Solved in 2 steps
- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
- If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityDefine the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?
- If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%(1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?