8. Determine the future value at the end of two years of an investment of OMR3,000 made now and an additional OMR3,000 made one year from now if the compound annual interest rate is 4 percent.

Q: What is the present value of 10 equal payments of $16,500 to be made at the end of each year for the…

A: Present value of equal payments = equal payments x PVIAF (10%, 10 years)

Q: Suppose that you invest $9,000 at 6% interest, compound quarterly, for 5 years. use Table 11-1 to…

A: Compound interest is the total interest earned during the investment period. It considers…

Q: What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded…

A: Given,Present Value (PV) = $3,100Rate of Interest (r) = 8.4% or 0.084Time Period (t) = 17 yearsType…

Q: 3. An investment offers P4,900 per year for 15 years, with the first payment occurring one year…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: How much will $10,000 grow to in 3 years, assuming an interest rate of 9% compounded quarterly? What…

A: As you have asked a multiple subpart question, we will answer the first three subparts for you. To…

Q: Assume the annual interest rate is 6%. Calculate the value of an investment that pays $100 every two…

A: Present value of perpetuity is = cash flow/rate

Q: What is the future value of a lump sum of $1,335, in 17 years, assuming an interest rate of 8.8…

A: Given details are : Present value = $1335 Time period = 17 years  Annual percentage rate = 8.8%…

Q: Calculate the future value of an investment if the annual interest rate is 9%, number of payments is…

A: Details given in the question are as follows: Annual payment = $1000 Time period (number of periods)…

Q: 1. The following are exercises in future (terminal) values: a. At the end of three years, how much…

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

Q: If you invest 5000 dollars today at a compound interest rate of 10 percent, compounded…

A: Future value can be defined as the worth of money at a future date, computed in accordance with the…

Q: What is the future value in 12 years of $1,000 payments received at the beginning of each year for…

A: As a first step, let's gather all the information that question has to offer.Annuity investment = A…

Q: Calculate, to the nearest cent, the present value of an investment that will be worth $1,000 at the…

A: given, Fv = $1000 n=7 m=52 r=12%

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: To calculate the present value we will use the below formula   Present value = FV/(1-d)n Where FV -…

Q: What is the future value of a $12,500 investment, earning eight-percent interest per period, after…

A: Given details are : Present value of investment = $12500 Interest rate = 8% Time period = 3 years…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: Future value after 12 years (FV) = $1,000 Quarterly period (p) = 48 (i.e. 12 years * 4) Quarterly…

Q: b. Calculate the present value of $5,000 received five years from today if your investment pays 6%…

A: The concept of present value implies that a sum of money shares are worth more than for the amount…

Q: What is the future value in 10 years of 1,500 payments received at the end of each year for the next…

A: * Note : As per policy only one question will be answered. Please refer to the image below.

Q: Find the annual worth in years 1 through 10 of an investment that starts at $8000 in year 1 and…

A: PV of single growing cashflow = (C(1+g)n)/(1+r)n Where C = cashflows = $8000 r = interest rate = 10%…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: Present value is the value of an investment that is in today’s term. It helps to make decisions…

Q: Use the present value formula to find the present value of P30,000, if the interest rate is 16%…

A: Future value = P 30,000 Annual interest rate = 16% Number of compounding per year = 4 Number of…

Q: What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs…

A: Computation of effective annual rate when rate is 8% and compounding is semiannually is as…

Q: 10. Determine the present value now of an investment of OMR3,000 made one year from now and an…

A: The money's worth varies with time. Therefore, we consider the value of the money with time. Today's…

Q: If an Investment of $5000 will grow to $8000 in four years with quarterly compounding the effective…

A: We will find the interest rate by applying the requisite formula where we can use the amount 8000…

Q: Which of the given interest rates and compounding periods would provide the best investment? (a) 10…

A: Given: Interest rate 10 1/2 percent per year, Interest rate 10 1/4 percent per year, Interest rate…

Q: Use the RSTUV method to obtain the solution. If P dollars are invested at r percent compounded…

A: Given, A = P*(1+r)^2

Q: Calculate the future value (FV) in 6 years time of £600 invested at 12% nominal annual interest, if…

A: Future value is the compounded value of a present sum of money compounded at a given interest rate…

Q: What is the future value in 10 years of 1500 payments received at the end of each year for tge next…

A: In the given question, 1,500 will be received (invested) at the end of each year for next 10 years.…

Q: If an Investment of $5000 will grow to $8000 in four years with quarterly compounding the effective…

A: Investment = 5000 N = 4 years i.e. 16 quarters (Quarterly compounding) Future Value = 8000 Effective…

Q: Consider the following investment. (Round your answers to the nearest cent.) $5,600 at  6 3/4%…

A: Time value of money concept says that if we invest a particular sum of money today will not have…

Q: What is the present value of an investment at 6% annual simple interest if it is worth $832 in 8…

A: Future value (S) = $832 Time (t) =  8 months (8/12) Rate (r) = 6% (0.06) Simple interest (I) = Prt

Q: The amount of $10,000 is invested and will be worth $21,000 in nine years. What in the continuoushy…

A: Continuous Compounded Interest rate is the interest rate that is calculated on the principal amount…

Q: Find the present worth of an investment that starts at $8000 in year 1 and increases by 10% each…

A: Time value It tells that value received today has more value than that of receiving the same value…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: Future compounded amount(A)=PV1+rnnt

Q: Calculate, to the nearest cent, the future value FV of an investment of $10,000 at the stated…

A: given, pv = $10,000 r= 0.2%  n = 8 years = 8 x 12 = 96 months

Q: The present value of $500 to be received 7 years from now at an interest rate of 8percent is ? .…

A: a) Present value of $500 which will be received 7 years from now at 8% can be calculated using a…

Q: What is the future value of a $1,200 investment, earning 10-percent interest per period, after two…

A: In the given question we require to compute the future value. Other details are : Present value of…

Q: How much is the present value of your investment if you invest P2,000 semi-annually at the start of…

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

Q: 8. Determine the future value at the end of two years of an investment of OMR3,000 made now and an…

A: The future value of an investment is the accumulation of an initial amount at a certain rate of…

Q: 2. You are asked to find the future value of $ 20,000 invested now after five years if the annual…

A: Part A: Present value = $20,000 Time period = 5 years Interest Rate = 8% The simple interest formula…

Q: Find the future value of an investment of $9,000 if it is invested for five years and compounded…

A: Future value = Principal(1+Rate)n   Here, Principal = $9,000 Rate = 2% Semiannual Rate = 1% Time =…

Q: You wish to make an investment of $10,000 at 5% interest. How much will your Investment be worth in…

A: Present Value= $10,000 Interest rate= 5% Time period= 20 years

Q: what is the present value of $800 to be received at the end of eight years assuming an interest rate…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the…

A: Given,  The present value of investment is $10,000 The rate of interest is 7% per year compounded…

Q: If the interest rate is 3 percent then what is the present value of $8,198 to be received in 6 years…

A: Answer: Calculation of the present value of $8,198 to be received in 6 years: Present value = Future…

Q: How much is the present value of your investment if you invest P2,000 semi-annually at start of…

A: The present value of annuity due is the present value of a series of cash payments that are expected…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

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

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.