Answered: A dollar invested today at 8.0 percent…

Business

Finance

A dollar invested today at 8.0 percent simple annual interest will be worth three years from now.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 2QTD

See similar textbooks

Related questions

Q: What is the future value of an initial $100 after 3 years if it is invested in an account paying 10…

A: Future value is defined as the current asset value at the date of future on the basis of an assumed…

Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…

A: Formulas: Future value = Present value *(1+rate)^years

Q: money is worth 7.3%, compounded quarterly?

A: Present Value of future cash flow means the cash flows discounted at a given rate of return. FV*…

Q: What is the present value of $9,300 received 10 years from now using a 7% interest or discount rate,…

A: Given details are : Future value = $9300 Time period = 10 years Interest rate = 7% Compounding…

Q: Given an interest rate of 6.0 percent per year, what is the current value of a perpetual stream of…

A: Value of the perpetuity in 4 years will be = Annual amount / interest rate = $ 36,000 / 0.06 = $…

Q: You borrow $105,400 today at a 9 percent annual interest rate (compounding is annual) with repayment…

A: We need to use the concept of time value of money (TVM). According to TVM, money today is worth more…

Q: What is the present value (PV) of an investment that pays $90,000 every year for four years if the…

A: The present value of an annuity is the sum of the discounted value of the periodic cash flows.…

Q: A man invested ₱130,000 at an interest rate of 10% compounded annually. What will be the final…

A: Calculate the compounded value after five years as below:. Resultant table: Hence, the compounded…

Q: What is the present equivalent of $ 180,000 to be received in 15 years when the interest rate is 7%…

A: Time value of money (TVM) means that the amount of money received in the present period will…

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: At an interest rate of 8% per year, $50,000 today is equivalent to how much a year from now?

A: Future value refers to the value of an asset or cash at a specified time in the future. It is based…

Q: What is the future equivalent of 10,000 per year that flows continously for 8.5 years if the nominal…

A: The following information has been provided in the question: Present value= 10000 per year Time =8.5…

Q: is invested now, $2,400 two years from now, and $3,400 four years from now at an interest rate of 8%…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: How many years an investment would be four times its initial value at an interest rate of 11…

A: The rule of 144 calculates the number of years in which the money or investment will quadruple. The…

Q: n annuity pays $1000 per year for 10 years. Inflation is 6 percent per year. ) If the real MARR is 8…

A: Real interest rate is reduced due to inflation but the actual rate is much larger.

Q: If you invest 5000 dollars today at a compound interest rate of 10% compounded semi-annually, what…

A: Future value = Present value * (1 + rate per period )^ No. of period

Q: What’s the future value

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: If (P) dollars are invested at the end of each year in an annuity that bears interest at an annual…

A: The future value of a regular annuity amount can determine with the help of the future value of the…

Q: You deposit $14,000 at a 8% interest rate for 9 years compounded quarterly. What is the future…

A: Since the interest is compounded quarterly, we have to calculate effective annual interest rate…

Q: What is the percent value of $2,725 per year, at a discount rate of 10%, if the first payment is…

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

Q: What is the future value eight years from now, of $2,000invested today at a periodic interest rate…

A: to calculate The future value eight years from now, of $2,000 invested today at a periodic interest…

Q: uppose that $5000 is invested each quarter, for the next 20 years. what is the future worth if the…

A: An annuity is a sum of series of payments after every year or after every quarter. An annuity can be…

Q: You have $900 to invest today. In how year will be double if you invest it an interest rate if 11%…

A: Given: Principal = 900 Amount =1800 Interest rate = 11% Compounded quarterly Time = ???

Q: What is the value of today of an investment that will pay $100 per year for 5 years. Assume first…

A: Present value of annuity is the present value of recurring cash flows with regular intervals at a…

Q: What is the present value of $6,000 paid at the end of each of the next 65 years if the interest…

A: Annual payment (P) = $6000 Interest rate (r) = 7% Number of annual payments (n) = 65

Q: What is the present value of $2,000 paid at the end of each of the next 88 years if the…

A: Annual payment (P) = $ 2000 Number of annual payments (n) = 88 Interest rate (r) = 8%

Q: You expect to receive $50,000 from your superannuation in 3 years from today. If the interest rate…

A: Please refer to the image below

Q: The doubling time of an investment with continuous compound interest is 12.6 years. If the…

A: First we will calculate the rate of interest required to double the investment with compounding and…

Q: What sum must be deposited today at 18 percent per year compounded monthly if the goal 5 years from…

A: Time value of money is one widely used by the management to evaluate the project and to determine…

Q: What is the future value of $39,000 invested today at 9% interest in 20 years with interest…

A: Using the future value function in excel

Q: You plan to invest $200,000 today at an annual interest rate of 12% over 10 years. What will be the…

A: Following details are given in the question: Present value (Investment today) = $200000 time period…

Q: What is the future value of $850 deposited for one year earning an 10 percent interest rate…

A: The future value is the instalment payment of fixed amount at a certain date in the future with a…

Q: A dollar invested today at 7.5 percent interest compounded annually will be worth one year from now.

A: In the given question we require to compute the value of dollar after one year if invested today at…

Q: What is the future value if the amount invested is 10,000 at 10% compounded quarterly for 5 years?…

A: Solution Given Present value 10000 Rate of interest 10% Compounding Quarterly…

Q: How much invested now at an interest rate of 10% compounded annuallywould be just sufficient to…

A: Present value is the current worth of the amount that is expected to be received in some future…

Q: What is the value today of $4,800 per year, at a discount rate of 8 percent, if the first payment is…

A: The formula to compute present value of annuity as follows: Present value of annuity=C×1-1+r-nr

Q: What is the present value of $10,000 to be received 10 years from now if the interest rateis 5…

A: Compound interest to interest charged on amount which is sum of principal and interest of previous…

Q: per year will accum

A: Deposit = 33047 $ Interest rate = 10 % Time = 10 years

Q: What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate is…

A: The formula to compute future value as follows: Future value=Invested amount×1+rmn×m

Q: the savings account that yields 12% compounded quarterly, what would our investment grow to at the…

A: The given problem can be solved using FV and EFFECT function in excel. FV function computes future…

Q: At an interest rate of 10 percent and using the Rule of 72, how long will it take to double the…

A: The rule 72 states about how much time it will take to double the money or what should be the…

Question

A dollar invested today at 8.0 percent
simple annual interest will be worth
three years from now.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction :

VIEW

Step 2: Answer :

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

If an asset declines in value from 5,000 to 3,500 over nine years, what is the mean annual growth rate in the assets value over these nine years?
At what annual interest rate, compounded annually, would $500 have to be invested for it to grow to $1,942.45 in 11 years? At what annual interest rate, compounded annually, would $500have to be invested for it to grow to $1,942.45 in 11 years?
You have $900 to invest today. In how year will be double if you invest it an interest rate if 11% compounded quarterly?
suppose that $5000 is invested each quarter, for the next 20 years. what is the future worth if the investment earns an annual rate of 9% compounded quarterly?
What will $82,000 grow to be in 11 years if it is invested today at 8% and the interest rate us compounded monthly?
What will $82,000 grow to be in 11 years if it is invested at 8% and the interest rate is compounded monthly
A new investment is expected to return $15,000 per year, starting from next year (t=1) for ten periods (i.e., from t=1 to t=10). Thus, the sum of the expected returns over those periods is $150,000. How much is the sum of the present value of the expected return over those periods, assuming that the annual interest rate is 5%?
Find the present value that will grow to $6000 if the annual interest rate is 3.5% compounded quarterly for 9 yr.
For a present sum of $620,000, determine the annual worth (in then-current dollars) in years 1 through 7 if the market interest rate is 12% per year and the inflation rate is 5% per year.The annual worth is $?
An investor lends $10,000 today, to be repaid in a lump sum at the end of10 years with interest at 10% (= im) compounded annually.What is the real rate of return, assuming that the general price inflation rate is 8% annually?
At an effective annual interest rate of 10 percent, how many years will it take a given amount to triple in value? 6.34 8.74 10.26 11.53 13.95
How long would you have to invest $8900 for it to grow to $13,450, assuming an APR (annual percent rate) of 6.2% and assuming quarterly compounding? on excel