Answered: at is the future value of Rs. 26…

Business

Finance

at is the future value of Rs. 26 invested for 32 years at an average rate of return of 7%?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 14EA: How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one...

See similar textbooks

Related questions

Q: Find the nominal rate of an investment with duration of 4 and a half years compounded once a year.…

A: The nominal rate of investment can be found using the RATE function in excel. RATE = (NPER, PMT, PV,…

Q: An investment increases in value by 20% in the first year. The new value increases by 18% in the…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: What is the present value of your-end-of-year investment of $1000 per year, with the first cash flow…

Q: over the past 3 years an investment returner( per year)20%,-13%,5%. what is thr annual standard…

A: Given:

Q: About how many years would it take for your investment to grow sixfold if it were invested at an APR…

A: Using NPER in Excel

Q: An investment will have a future value equal to Php180,250 after 6 years. It has a nominal rate of…

A: Future value of the investment (F) = Php 180250 r = 10.5% per annum = 2.625% per quarter n = 6 years…

Q: What is the future value in 4 years of €1,000 invested in an account with a stated annual interest…

A: Amount Invested is 1,000 Time period is 4 years Interest rate is 10% To Find: Future Value…

Q: s the future value (FV) of $72,000 in 25 years, assuming the interest rate is 5.5% per year?

A: The worth of a present asset at a future date based on an expected rate of growth is known as future…

Q: An investment of $81,000 yields a net annual income of $17,000 for 6 years. What is the internal…

A: Capital budgeting is the process of making capital investment decisions by a corporation. Capital…

Q: If $11,000 is invested at an annual rate of 6.5% compounded continuously, find the future value…

Q: What will be the future value of $5 000 invested for six years at 8% per annum compounded annually?

A: Information Provided: Principal value = $5000 Interest rate = 8% compounded annually Years = 6

Q: An investment will have a future value equal to Php180,250 after 6 years. It has a nominal rate of…

A: The quarterly compounding refers to compounding 4-times a year. To reflect the compounding impact,…

Q: An investment has doubled in 8 years. What is the annually compounded rate of return? Select one:…

A: Period = 8 Years

Q: The initial cost of an investment is $65,000 and thecost of capital is 10%. The return is $16,000…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

Q: Approximately, what is the value of PG (present worth of arithmetic gradient) if G=100, n=21 years,…

A: Arithmetic gradient is a no. of payments which is increased or decreased with same rate over the…

Q: What is the dollar-weighted return on a $100 investment that generates annual returns of $20, $15,…

A: Return is that portion which a person receives over the investment amount during the whole period.…

Q: When will an investment of 4,000.00 double if the effective rate 8% per annum?

A: Solution : given investment P = 4,000 Effective annual rate r = 8% Amount A = 2P We know the…

Q: t is the future value of Rs. 26 invested for 32 years at an average rate of return of 8%?

A: The given problem can be solved using FV function in excel. FV function computes amount accumulated…

Q: How much will be the equivalent worth of ₱2M invested today for three years at a commercial rate of…

A: Investment amount (PV) = P 2,000,000 Annual interest rate = 10% Quarterly interest rate (R) = 10%/4…

Q: A. You invested $100 6 months ago. Today the value of your investment is $110. What is the CCR over…

A: CCR can be be calculated by using this equation Future worth of investment =present value of…

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

A: A) The present value of a future value can be calculated using the formula below: Given; FV = 10000…

Q: What is the simple annual rate of return on a $10,000, 3-year investment with cash inflows of $2,000…

A: The simple annual rate of return is calculated by dividing the annual cash flow by the initial…

Q: A person invests Rs 2,00,000 at 6% Rs 50000 at 7% and 25000 at 8% . What is the average return on…

A: Return on Investment: It measures and evaluates the profitability of any investment made by a firm.

Q: What annual rate of return is earned on a $3,300 investment when it grows to $7,100 in nineteen…

A: 4.11%

Q: What is the present worth difference between an investment of $15,000 per year for 35 years and an…

A: Present worth is calculated by discounting the future cash flow by the discounting rate. Present…

Q: About how many years would it take for your investment to grow if it were invested at an APR of 9…

A: In the given question we require to calculate the the number of years that make the investment…

Q: About how many years would it take for your investment to grow threefold if it were invested at an…

A: In the given problem we require to calculate the number of years that will make the investment three…

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

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

Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of year 4, $300…

A: Both future value and present value of a series of payments needs to be calculated.Please refer to…

Q: What is the present value of an investment in which the interest rate is 3.9% per year, compounded…

A: The time value of money is the idea that the value of money received today will be more worthy than…

Q: a. What is PV of $100 received in year 10, with 1% discount rate?b. Hans made investment $10 million…

A: Present Value Present value refers to the discounted value of cash flows which is occurring at a…

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: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300…

A: Time value The amount of money received today has more value than that of receiving the same amount…

Q: What is the future value factor for a cash flow to be received in seven years, where the interest…

A: Interest rate (r) = 15% Period (n) = 7 Years

Q: . For problem 2, what is the payback period (yr) taking into account the interest lost on the…

A: Given: Number of units manufactured annually = 5000 units Let number of units to be manufactured to…

Q: What is the future value of ordinary annunity of RM1000 per year for 7 year compounded at 10% ? What…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: future value of an investment made 5 years ago is P150,000. If the investment offered an annual…

A: Effective rate goes on increasing if the compounding goes on increasing. And effective rate is less…

Q: What is the present value or Principal

A: Time value of money means that the money the money that we receive today will be worth more than…

Q: What is the future value of a series of $4,500 annual payments received at the end of each of the…

A: Annuity refers to series of equalized payments that are either made start or end of specific…

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 receiving $1,950 a year for 30 years if you expect a rate of return of…

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

A: The future value of a single sum deposited can be calculated by using this equation Future value…

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: What is the present value of an investment that will pay $1,000 in one year's time, and $1,000 every…

A: Calculation of Present value of perpetuity:Answer:The present value of the investment is $12,500

Concept explainers

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.

Question

100%

What is the future value of Rs. 26 invested for 32 years at an average rate of return of 7%?

Video Video

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

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

Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)
How much must be invested now to receive $30,000 for 10 years if the first $30.000 is received one year from now and the rate is 8%?
What is the future value of Rs. 26 invested for 32 years at an average rate of return of 8%?
What is the value of $12,000 invested per year for 20 years at 7% return?
What is the present worth difference between an investment of $15,000 per year for 35 years and an investment of $15,000 per year forever at an interest rate of 13% per year? The difference is determined to be $
An investment of $70,000 yields a net annual income of $15,000 for 6 years. What is the internal rate of return (IRR) for this investment?
What is the value of $100,000 invested for a period of 20 years at 7% return
Solving for Rates What annual rate of return is earned on a $3,300 investment when it grows to $7,100 in nineteen years?
What is the simple payback period (in years) for an investment of $165,000 if the net annual income is $35,000?
over the past 3 years an investment returner( per year)20%,-13%,5%. what is thr annual standard deciation of returns?
The in itial cost of an investment is $65,000 and thecost of capital is I 0%. The return is $ 16,000 per year for 8 years.What is the net present value?
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%?