3.20 Calculate the future worth (in year 11) of the following income and expenses, if the interest rate is 8% per year. Year Income, $ Expense, $ 12,000 3000 1-6 800 200 7-11 900 200

Q: What is the future value of the following cash flows AT THE END OF YEAR 5, assuming a 6% interest…

A: Computation:

Q: Calculate the future value of the following cash flow if it is invested @ 8% interest p.a. At the…

A: Future value can be calculated by multiplying cash flow with future value factor.   Future value…

Q: 1- Calculate the rate of return to be obtained for the investment to be made in the 1st year…

A: Investment means engaging your funds to generate income in the future. The rate of return (ROR)…

Q: 5. Calculate the Present worth (where Ptotal= PA+PG) if G (arithmetic gradient) =35, n=8 years,…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Calculate the future worth (in year 11) of the following income and expenses, if the interest rate…

A: Computation of net amount:

Q: If money is worth 12% compounded quarterly and n = 5, compute the present value of the following:…

A: The present value method is a discounted method of the time value of money. It determines the value…

Q: e value at the end of the 8th year for the cash flow diagram shown below if i=4% ded annually. What…

A: Future Value is the value of cash flow at a future point in time. For calculating the future value…

Q: (a) Using tabulated factors for the cash flow series shown, calculate the future worth at the end of…

A: Future value refers to the future worth of current cash flow at a  certain rate of interest and…

Q: EOY Net Cash FloW -$18,000 +$1,800 +$2,160 +$2,592 +$4,100 +$2,700 +S3,000 +$3,300 +$3,600 1 3 4 5 7…

A: Present worth of cash flow or outflow may be calculated by using present value factor at the given…

Q: 6. Determine the equivalent present worth in year 0 (PT) of all of the cash flows at i = 12% per…

A: Data given: i= 12% Initial cash flow in year 0 = $30000 Annual cash flow from year 1 to 3 = $5000…

Q: QUESTION 1 For the below Cash Flow, find the total PW value using 10% interest rate years cost $…

A: As you have posted multiple questions, we will answer the first question for you. To get answers for…

Q: Calculate the EUAC of a company If present worth is 5000$ for 6 years at interest rate of 11%.…

A: The answer for the multiple choice question and relevant working are presented hereunder : Present…

Q: What is the future value of $11,000 invested for one year at an interest rate of 6% p.a.? a. $17000…

A: Given, PV = 11000 Rate = 6%

Q: What is the future value of the following cash flows AT THE END OF YEAR 5, assuming a 6% interest…

A: Interest rate is 6% Compounded annually To Find: Future value at the end of 5 years

Q: An investor put his money in an investment earning 10 1/2% simple interest rate per annum. If his…

A: simple interest formula: A=P×1+RT given, p 12.30 MILLION R=10.5% T=15 / 12 YEARS

Q: What is the future value of $2,000 invested at the beginning of each year for six years at 4%? a.…

A: The future worth of the investment is the amount which will be receiving in the following years that…

Q: 14. Suppose you invest $4000 in a Compound Interest account, at an APR of 3% for 10 years. What is…

A: An interest rate method in which current interest is computed by multiplying the interest rate by…

Q: 15. If money is worth 4 2/5% simple interest, what is the present value of 7,215 due in 4 year and 7…

A: Annual simple interest rate = 4 2/5 = 4.04% Future value = 7215 Period = 4 Years and 7 months = 4…

Q: Approximately, what is the value of PG (present worth of arithmetic gradient) if G=75, n=16 years,…

A: Arithmetic Gradient is an equal amount which gets added to each subsequent annuity. It increases…

Q: 1. The return of an investment is given in the following table: Year Balance RM5000 RM5375 2…

A: Year Balance 0 5000.00 1 5375.00 2 5697.50 3 5925.40

Q: What will $205,000 grow to be in 7 years if it is invested today in an account with an annual…

A: Investment amount (PV) = $205,000 Interest rate (r) = 12% Period (n) = 7 Years

Q: For the following cash flow, calculate the equivalent AW. Assume i= 8% per year. Year Incomes…

A: Equivalent annual worth is the calculated by present value of annuity formula, where the present…

Q: At what annual interest rate will $1,200 invested today be worth $2.500 in 12 years?

A: Total amount (A) = 2,500 Principal (P) = 1,200 Years (n) = 12

Q: Future Value A total of $8800 is invested at 6%interest, compounded daily.a. Find the future value…

A: Introduction: Future value can be defined as the value of an asset or a investment at a future date.…

Q: Find the future worth in year 10 of an investment that starts at $1700 in year 1 and increases by 9%…

A: Given: Investment = $1,700 Growth rate = 9% Interest rate = 15% Period = 10 years

Q: You wish to have $18,250 in 9 years. How much should you invest now at 5% interest, compounded…

A: Present Value: It is the present worth of the cash flows or a sum of money to be paid/received in…

Q: of spending $10,000 in year 3, $20,000 i 30,000 in year 5, if the interest rates are d to be 10% per…

A: In this we need to calculate the present value today.

Q: Approximately. what is the value of PG (present worth of arithmetic gradient) if G-85, n=18 years,…

A: Arithmetic Gradient is an equal amount which gets added to each subsequent annuity. It increases…

Q: Find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The…

A: The formula used for calculating G is:

Q: The value of a good rises by 13% in a year. If it was worth 6.5 million at the beginning of the…

A:

Q: Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your…

A: Lets understand the basics. Present value is a value in present of the future amount. For…

Q: What is the future value of the following cash flows AT THE END OF YEAR 5 assuming a 6% interest…

A: We will use the following formula :  F=P(1+r100)nWhere,F=future value P=present value r=rate of…

Q: For the cash flow series shown, determine the future worth in year 5 at an interest rate of 10% per…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: A company is expected to result 2900$ savings first year then increase by 200$ annually, if the rate…

A: Annual worth is the value of benefits and costs that would be incurred over a specific time period…

Q: Present value of amounts due   Assume that you are going to receive $ 50,000 in 10 years. The…

A: Present value is a concept in the time value of money that states that cash flows in the future are…

Q: The following table presents a series of income and expenses. Assume an interest rate of 5% per…

A: Present value (PV) is the amount which is equivalent to some higher future amount in case of…

Q: Suppose $1000 is invested at the end of each year. Assume the investments earn 10% compounded…

A: Future Value = P(1+r/n)^ntWhere P = Principal = $1000R = Rate on interest = 10%N = number of times…

Q: For the cash flows shown, find the value of x that makes the equivalent annual worth in years 1…

A: Equivalent annual worth is the tool which can be used by investors for assessment of investment…

Q: Exponential equation for a future value  a of an account earning interest compounded annually at a…

A: A=P(1+r)^y r=48/800*100=6%

Q: 2. How much should be invested now (at present time) at 8% compound interest per year, in order to…

A:

Q: Invest $7,000 today, receive $2,000 in year 1, $4,000 in year 2, and $8,000 in year 3. o Calculate…

A: Year 0 cash flow = - $7000 Year 1 cash flow = $2000 Year 2 cash flow = $4000 Year 3 cash flow =…

Q: 1) A company is expected to result 2900$ savings first year then increase by 200$ annually, if the…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: 5-8 present and future values of a cash flow stream.An investment will pay $100 at the end of each…

A: Present value  The current amount of money that will be collected in the future in the form of one…

Q: Determine the present worth of the following cash flows if the interest rate is 6% per year:

A: Present worth is used to apply in the series of the cash flows, which used to occur at the various…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.