An engineer has received $10 000 from his employer for a patent disclosure. He has decided to invest the money in a 15-year savings certificate that pays 8% per year, compounded annually. What will be the final value of his investment, in terms of today's dollars, if inflation continues at the rate of 6% per year

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Save 20% of Yearly Income Income in first year = 1,000,000 Savings in first year = 20% * 1,000,000 =…

Q: Ms. Cristiana Piccini is valuing an investment that pays her $27,000 per year for the first ten…

A: Calculation of Value of Investment: Excel Spreadsheet:

Q: Luis has $160,000 in his retirement account at his present company. Because he is assuming a…

A: Given: Amount in retirement account = $160,000 Annual payment = $2,000 Years =22 Interest rate = 8%

Q: An investor has purchased an investment which offers him 30 annual payments of dollar 1,200 per…

A: To find the present value of the investment, we will first define where the payments are made. We…

Q: Felix Jones, a recent engineering graduate, expects a starting salary of $35,000 per year. His…

A: Solution : Due to averaged Increment in salary was 5% for last several years & interest rate was…

Q: An engineer in an industry has received a year- end bonus of $10,000 which will be invested…

A: FV = PV * (1 + r)n FV = Future value PV = present value = $10,000 r = rate of interest = 8% n =…

Q: how much will the three project payments be worth at the time of her retirement?

A: Introduction: The term future value of annuity can be defined as the value of payments at some…

Q: Nine  years  from  now,  Sam  wants  to  have  an  amount  available  to  deposit  into  an  account…

A: ANSWER GIVEN ON THE NEXT SHEET

Q: Daryl Yap invested the amount of Php100,000 in a bank that offers 15 % per annum simple interest.…

A:

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…

Q: ones can deposit $5,000 at the end of each 6-month period for the next 12 years and earn interest at…

A: a) Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, P =Periodic payment i.e. $5000 n = no.…

Q: 1. Mr. Teves bought a property on sale with a P200,000 down payment and twelve equal monthly…

A: Down payment = P 200,000 Monthly payment = P 10,000 Number of monthly payments = 12 First payment =…

Q: An employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the end of the…

A: Money discounting is the process of determining the present value of future cash flows. The interest…

Q: An old man buys a piece of lot for 150,000 down payment and 12 deferred semi-annual payments of 8500…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: An Engineer deposits 7,000 pesos every year end in a savings account that pays nominal annual…

A:

Q: Mr. Joe decides to pay $40,000 annually to the 6 - year capital improvement to the Food Process…

A: Present Value(PV) is worth of amount that is received or paid at future date t current time. It is…

Q: Your client just received a large bonus of $100,000. He wants to set it aside for retirement but…

A: Compound interest: It is the interest on interest calculated on the principal amount of a loan or a…

Q: A man is planning to retire in 20 years. He can deposit money for his retirement at 8% compounded…

A:

Q: A contractor is calculating the present worth of the salaries of his five employees over the next…

A: Present worth refers to the amount present today that is more valuable than the amount will…

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…

Q: yesterday, Ahmed Ali borrowed $87000 to purchase Bulldozer. He can repay the loan in either of the…

A: The money available at time 0 or at present, is referred to as present worth or present value. The…

Q: To pay for your child’s education, you wish to have accumulated $25,000 at the end of 15 years. To…

A: Future Value refers to compounded value of present amount or a series of equal amount of payment…

Q: our father paid $10,000 (CF at t = 0) for an investment that promises to pay $850 at the end of each…

A: We have to essentially find the disocunt rate at which this investment has NPV of zero. Thus, we…

Q: A man is planning to retire in 20 years. He wishes to deposit a regular amount every three months…

A: Annual payments he will receive = $95000 Time period = 18 years  Interest rate = 8% Compounding =…

Q: Brian is saving for retirement in 24 years. He wishes to have $1,125,000.00 and is expecting an APR…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask…

Q: A civil engineer who is about to retire has accumulated 750 000 in a savings account that pays 6%…

A: The question is based on the concept of Financial Management. Annuity refers to the series of equal…

Q: Assume that you will have a 10-year, $10,000 loan to repay to your parents when you graduatefrom…

A: The loan is to be paid in 10 annual installments of $1,490. It includes both the payment of interest…

Q: To pay for your child's education, you wish to have accumulated P15,000 at the end of 15 years. To…

A: Future value (F) = P15,000 Time period (n) = 15 years Rate of interest = 6% (compounded annually)

Q: A group of employees decided to invest a portion of their 13th-month pay. After 3 months from today,…

A: Here, Withdrawal Amount is P5,000 Time Period  is 12 months Interest Rate (r) is 5% Compounding…

Q: A young man has decided to go into business at age 40. He wishes to accumulate P200,000.00 at that…

A: Given: Future Value = P200,000 Current Value invested = x Deposit will increase each year by 10%…

Q: If his new interest rate is 5% per year compounded monthly, what will be his new monthly payment?

A: When a loan is borrowed by a person, It becomes his obligation to pay the installment amount every…

Q: Mechanical Engineer John Cena is planning for retirement decides that he wishes to have income of…

A: Annual income of Php200,000 for 20 years First withdrawal is beginning 30 years from now, Interest…

Q: A business owner plans to deposit their annual profits in an investment account earning a 9% annual…

A: Solution:- When an equal amount is deposited each period at beginning of each period, it is called…

Q: You are working for a finance firm and a client comes to you and wants to know how much money they…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: You decide to invest in an instrument that pays 5% annual capitalizable interest each semester. If…

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

Q: How much (in $) should the company invest now to have sufficient funds to build the homes in the…

A: Present Worth: It is the present value of the sum of the amount discounted at a specific rate of…

Q: Mr. Ramos buys a house and lot that cost P450,000. He pays P75,000 as down payment and promises to…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Bill Padley expects to invest $10,000 for 25 years, after which he wants to receive $108,347. What…

A: Future value table: This table shows the future amount of investment at specific rate and periods.…

Q: A man has deposited ₱50 000 in a retirement income plan with a local bank. This bank pays 9% per…

A: The provided information are: Deposit = 50,000 Rate of interest = 9% = 0.09 Time period = 12

Q: a business owner plans to deposit annual profits in an investment account earning a 9% annual…

A: Annual interest rate (r) = 9% Annual investment (P) = 22,000 Number of annual deposits (n) = 1+7 = 8

Q: Mr smith wants to borrow P100,000 from a bank to rebuild his shop from damages caused by an…

A: First we need to calculate size of quarterly payment of loan amount. PMT =PV*i1-1(1+i)n where PV…

Q: The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How…

A: The total number of employees is 50 and the total bonus to be received is $60,000 (50 employees ×…

Q: An individual has $1,000 to invest and wants to accumulate $1,470 in 5 years. What interest rate,…

A: In this question we need to compute the interest rate from following details : Present value of…

Q: An engineer purchases an equipment that will be worth Php 20000 in seven years. If the price…

A: Price in seven years = 20,000 Annual Increase = 9%

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: The question is based on the concept of future value of money which says that future value of money…

Q: Demar won a prize of $45 000. He has decided to invest in an account paying 3.5% per annum,…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

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.