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?

Q: if you invest P10,000 with a rate of interest of 12% compounded annually, compute the interest of…

A: Here, Investment Amount is P10,000 Interest Rate is 12% Inflation Rate is 10% Time Period is 10…

Q: Calculate the inflation-free interest rate assuming that the inflation rate is 6% and the nominal…

A: Nominal Rate Rate = (1+Real Rate ) *(1+Inflation Rate) -  1 Real Rate = (1+Nominal…

Q: If you invest P10,000 with a rate of interest of 12% compounded annually, compute the interest of…

A: Investment amount (I) = P 10000 Interest rate (i) = 12% Inflation (f) = 10% n = 10 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 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: With a present value of $150,000, what is the size of the withdrawals that can be made at the end of…

A: We use PMT function in excel to calculate quarterly withdrawal

Q: What single investment made today, earning 10 % annual interest, will be worth 10,000 TL at the end…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

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: Suppose that you borrow $60,000 at 9% compounded monthly over five years. Knowing that 9% represents…

A: Computation:

Q: Tommy John is going to receive $1,000,000 in three years. The current market rate of interest is…

A:

Q: what would be the present value of $10,000 in the future?

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

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: d it will become $ 6,000 at the end of 4 years, determine the nominal rate of interest and the…

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

Q: A certain amount of money after a decade is said to b worth Php 12,000.00. If the interest rate…

A: first calculate the amount after first half present value = FV/(1+rate)n = 12,000/(1 + 1.1%/6)5*6 =…

Q: What would be the future value of $7,992 invested annually for nine years beginning one year from…

A: future value formula: future value =A×1+rn-1r where, A=annuity r=rate of interest n=number of years

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: Suppose you wish to retire in 43 years on a fixed income equiva- lent to $66,000.00 in today's…

A: One of the important techniques that are used by the management in various areas such as a…

Q: If you are promised $50,000 six years from now, the present worth at a real rate of return of 4% per…

A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…

Q: Suppose you wish to retire in 41 years on a fixed income equiva- lent to $66,000.00 in today's…

A: Yield = 5.3% N = 41 Inflation rate = 2% Future Value Required = Present Equivalent * (1+Inflation…

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 present value of 24 monthly cashflows of $420 each starting today if the interest rate…

A: Using excel PV function, This is question of annuity due since cashflow starting today

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: Tommy John is going to receive $1,000,000 in three years. The current market rate of interest is…

A:

Q: A proposed project which requires an investment of R10,000 (now) is expected to generate a series of…

A: Initial investment = R 10000 First payment (A) = R 6000 Growth rate (g) = 5% Interest rate (i) = 11%…

Q: An annuity provides for 10 consecutive end-of-year payments of $15,000. The average general…

A: Calculation of present worth of annuity: Answer: Equivalent amount of today’s dollars is $100,651.22

Q: The future amount of ₱10,000.00 for a period of 8 years is equal to ₱34,165.55 considering money’s…

A: The future amount (F) = ₱ 34165.55 n = 8 years Present value (P) = ₱ 10000 Let f = Inflation rate r…

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: What is the future worth of $1,000 in month 1, $1,040 in month 2, and amounts increasing by $40 per…

A: Time value of money states that the value of money grows over time, the growth in the value of money…

Q: ay you $99,000 in 15 years. If the appropriate discount rate is 6.7 percent compounded quarterly,…

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

Q: With a present value of $125,000, what is the size of the withdrawals that can be made at the end of…

A: Working note:

Q: f P50,000 if the interest rate is 9% compounded quarterly?

A: Given as, P=50,000 F V=100,000 r=9%=0.09 n=4

Q: If the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000…

A: The question is based on the concept of future value calculation of annuity payment, by use of…

Q: An annuity pays $1000 per year for 12 years. Inflation is 6 percent per year. The annuity costs…

A: Internal rate of return is one of the modern techniques of capital budgeting which considers the…

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 of $6000 invested for 4 years, if the interest rate is 12% p.a.,…

A: In this question we require to compute the future value of $6000 invested for 4 years at 12%…

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: With a present value of $130,000, what is the size of the withdrawals that can be made at the end of…

A: Present value of an amount is $130,000. Using present value annuity formula, quarterly withdrawals…

Q: With a present value of $110,000, what is the size of the withdrawals that can be made at the end of…

A: We need to use present value of ordinary annuity(payment due at end) formula to calculate the size…

Q: 1. AP 50,000 is invested at a rate of 10% for 10 years with an average annual inflation rate of 5%.…

A: The maturity amount of the investment will be equal to the future value of P 50,000 invested at 10%…

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 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: With a present value of $125,000, what is the size of the withdrawals that can be made at the end of…

A: Present value (PV) = $125,000 Period = 10 Years Quarterly periods (n) = 10*4 = 40 Interest rate =…

Q: A certain amount of money after a decade is said to be worth Php 10,000.00. IF the interest rate…

A: Present Value = Future Value/(1+EAR)n  EAR = (1+nominal rate/m)m -1 m is number of times interest…

Q: With a present value of $145,000, what is the size of the withdrawals that can be made at the end of…

A: Time value of money identifies the depreciation in value of money over the period of time by…

Q: Suppose that you borrow $60,000 at 9% compounded monthly over five years. Knowing that the 9%…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: A music composer deposits $5,000 into an investment that earns an annual interest rate of 5.8%. If…

A: Nominal interest rate = 5.8% Inflation rate = 1.7%

Q: An investment becomes P 4,500,000 four years from now and becomes P 5,250,000 thirteen years from…

A: Let the initial investment = X Future value (F) after 4 years = P 4500000 Future value (F) after 13…

Q: The future amount of $200,000 for a period of 5 years is equal to $391,886.33, considering money is…

A: according to time value of money, future value = present value×1+rateyears