(a) Given the effective rate of interest as 7.5%, calculate the present value which will provide the payment of RM1,000 in 1 year and RM2,000 in 3 years.
Q: Calculate the future value of the following two cases: a. LE150,000 deposited in an account that…
A: Loan amount = LE150,000 Interest rate = 8% Time period = 7 years
Q: Find the FV (Future Value) at the end of the last payment period. Payments of RM1000 each are made…
A: Annual payment (A) = RM 1000 n = 3 years r = 5% Let's calculate the present value first.
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A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…
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A: The present value is the worth of amount that has to be received/paid in the future.
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A: When the periodic cash flows are constant for the period, it is known as annuity. Annuity is…
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A: Semiannual payment (S) = P 10000 first payment at 5 years ( after 9 semiannual periods) Interest…
Q: What is the present value of $4000 to be received in 6 years, if the interest rate is 5% p.a.,…
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Q: Compute the future value of annual payments of $1,000, paid for 4 years, using an interest rate of…
A: Future value can be defined as the future worth of the present cash flow that will be received from…
Q: The present value of $60,000 to be received in one year, at 6% compounded annually, is _____…
A: Option d is the correct option.
Q: If money is worth 12% effective, what equal payment (x) at the end of 2 years and 4 yrs will…
A: present value of the obligations = 3000/1.056 + 5000/1.0510 = 5308.21
Q: 1. If P500.00 is invested at the end of each year for 6 years at an annual interest rate of 7%, what…
A: The questions here pertain to annuity. An annuity is a stream of constant cash flow that occurs at…
Q: 4. RM27,000 was invested for 5 years. The interest rate offered was 6% compounded every 2 months for…
A: The future value of the investment will depend upon the interest rate for the period and the…
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A: Given: Present Value: PHP1,000 Interest Rate: 5% To compute: Compare future values when interest…
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: Find the rate of interest and final amount resulting from an investment of P800 at 12% simple…
A: Simple interest: It is the return an individual gets on the amount invested by him at the end of…
Q: What is the present value of a stream of $800 cash payments, each to be made at the end of the next…
A: Given:
Q: Calculate the future value of $2,000 in a. 3 years at an interest rate of 10% per year. b. 6 years…
A: Future value = Present value ×(1+pir) ^n Where, Pir = Periodic interest rate n = number of periods…
Q: P100 is received at the end of one year, P500 at the end of two years, and P1000 at the end of three…
A: Present value is the sum of discount value of all future cash flows.
Q: 1. The value of perpetuity per year is Php 10,000 and the annuity is Php 5,000. What is the Rate of…
A: Value of Perpetuity = Amount of Annuity/ Rate of Interest
Q: P50,000 was deposited on savings at a rate of 10% per annum for 3 years. What is the compound…
A: The present value that is compounding over the period of time will be turned out as future value.…
Q: The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years…
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…
Q: A sum of 12,500 amounts to 15,500 in 4 years at the rate of simple interest. What is the rate of…
A: Simple interest is defined as an interest type, which is an easy method for the calculation of an…
Q: Rank the following from highest present value to lowest present value. A payment of $5000 to be…
A: Option 1. Payment of 5000 N = 5 Option 2. Payment of 5000 N = 2 Option 3. Payment of 2000 in 1…
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A: The question is based on the concept of present value calculation for an expected annuity cash flows…
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A: Present Value of Perpetuity = Perpetual Income / Interest Rate
Q: What will be the compound interest accrued on a sum of $3500 at the rate 8% in 2 years?
A: Given: Rate of interest (r)= 8% Time period = 2 years
Q: Now, I want you to answer these; a) If the value of investment is P250, 000 yielding an interest of…
A: Future value of investment can be calculated using FV function in excel. FV (rate, nper, pmt, [Pv],…
Q: Assume the following annual payments of notes payable of Demi Company with 10% discount rate. 1st…
A: Time value of money concept says that a sum of money invested today will have more value in future…
Q: What is the present value of $11,000 to be received in two years if the interest rate is 5% p.a.?…
A: given future value = 11000 Years = 2 rate = 5%
Q: At an annual interest rate of 7% the future value of $5,000 in five years is: $7,035…
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Q: Directions: Solve the present value P, and amount F of the following ordinary annuities. Quarterly…
A: Present value = Pmt x [1 - (1 + r)-n]/r
Q: Q9. If an amount of $14,000 is deposited into a savings account at an annual interest rate of 5%,…
A: A concept through which it is studied that the current worth of money is higher than its future…
Q: A sum of OMR 25600 is invested at an interest rate of 6.25% per year. If the interest is compounded…
A: The time period or the number of years (NPER) refers to the time it would require for the investment…
Q: Match the correct answer for the following questions v The present worth of $400 in year 1 and…
A: 1) First year amount (A1) = $400 Increase of $30 every year till year 5 r = 12%
Q: What's the present value of $12,000 discounted 5 years if the appropriate interest rate is 4.5%,…
A: The value today can be calculated with the help of present value function
Q: 4. RM27,000 was invested for 5 years. The interest rate offered was 6% compounded every 2 months for…
A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…
Q: What is the present worth of P 2,991 and P 6,337 payments at the end of the 5 and 15 years,…
A: Payment 1 (P1) = P 2991 at the end of year 5 Payment 2 (P2) = P 6337 at the end of year 15 r = 14%
Q: What is the value of the following payment stream 1 year from now, at a simple interest rate of…
A: solution Given Simple interest rate =4.4% Amounts $10000 ,3 years ago $6000 ,1.25 years ago…
Q: 1. The return of an investment is given in the following table: Year Balance 0 RM5000 1 RM5375 2…
A: Given Information:
Q: What is the present value of a stream of $800 cash payments, each to be made at the beginning of the…
A: Present Value represents the present worth of the investment. This can be computed by using Excel…
Q: Answer the following questions and show your Solution.A-C. Find the present value of the following…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
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A: A method of computing interest amounts in which the compounding effect was not considered by the…
Q: What is the present value of $10,000 that is to be received in 9 years, if the discount rate is 7%…
A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…
Q: Find the simple interest on RM68,000 at 16 2/3% per annum for a period of 9 months?
A:
Q: Find the value of the required components in each item. 1. Find the compound interest and maturity…
A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a…
Q: a) What would be the accumulated value of ₺ 100.000 in a saving account at 8% per year for 5 years…
A: Amount = 100000 Interest Rate = 8% Years = 5 for compound interest rate Years = 9 for simple…
Q: 2. What is the present worth of Php 250 annuity starting at the end of 3rd year and continuing in…
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Q: e simple interest where principal amount is Rs. 10,000; interest rate is 9% for three ye
A: Simple interest is interest computed on principal amount only not on interest accrued or accumulated…
(a)
Given the effective rate of interest as 7.5%, calculate the present value which will provide the payment of RM1,000 in 1 year and RM2,000 in 3 years.
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- What is the equivalent present value of the following series of payments: ₱ 5,000 the first year, ₱ 5,500 the second year, and ₱ 6,000 the third year? The interest rate is 8%, compounded annually. a. ₱ 15,904.22 b. ₱ 13,590.43 c. ₱ 12,573.90 d. ₱ 14,107.99A debt of RM600 due in three years and RM800 due in four years is to be repaidby a single payment two years from now. If the interest rate is 8% compoundedsemiannually, how much is the payment?What will be the compound interest accrued on a sum of $3500 at the rate 8% in 2 years?
- at what interest rate will a principal of P9,500 accumulate to P15,000 in 2 years compounded semi-annually?What is the equivalent present value of the following series of payments: $10,000 the first year, $11,000 the second year, and $12,000 the third year? Consider 4% interest, compounded annually.Suppose that Php2,000 is deposited at a compound interest rate of 6% annually. Find the total account value after 12 years
- The present value of a loan of R12 000 due in five years’ time, at a simple discount rate of 15% per annum isWhat is the present value of an annual payment of $9,500 discounted back 8 years at an annual rate of return of 3%?(b) A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded semi-annually, calculate the following: (i) The present value of this debt.
- What's the present value of a 4-year ordinary annuity of Php2,250 per year plus an additional Php3,000 at the end of Year 4 if the interest rate is 5%?What is the present worth in year 0 of a uniform series of payments of $1,000 in years 2 thru 5 and another series of $2,000 payments in years 8 thru 12 at an interest rate of 12% per year?RM1,800 is invested in scheme A at 10% per annum for 2 years at simple interest while another RM1,800 was invested in scheme B at 10% compounded quarterly. Which scheme will give more profit to investor and find the difference between the interest earned?
