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A: Present value refers to the current value of a sum of money in the future at a specified interest…
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A: NOTE : As per BARTLEBY guidelines, when multiple independent questions are given, then first…
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A: A series of recurring fixed payments over a particular period of time is called as annuity. To…
Q: a) What is the present worth ofequal payments of $25,000 made semi-annually (i.e., twice every year)…
A: Semi annual payment (P) = $25,000 Interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%
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A: Payment per period can be calculated using PMT function in excel. PMT(rate, nper, pv, [fv],…
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A: Deferral Period: It is the period in which the borrower does not have to pay interest or repay the…
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A: The worth of a present asset in the future based on a projected growth rate is referred to as future…
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A: The present value is the worth of amount that has to be received/paid in the future.
Q: A payment of $15,000 is due in 1 year and $11,000 is due in 2 years. What two equal payments, one in…
A: Compounding is a technique which is used to compute the future value (FV) of the present amount by…
Q: The annual discount rate is 7.70%. a. What is the present value of a perpetuity that pays 2,000 at…
A: Perpetuity is a situation where a stream of Cashflow payments continues indefinitely or is an…
Q: What equal annual payment series is required to repay the following present amounts? $15,000 in six…
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: In this we need to calculate all values after 1 year.
Q: What series of equal payments is necessary to repay the following present amounts? $4,000 in five…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
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: a series of 12 annual payments of $2400 is equivalent to three equal payments, one each at the end…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: What is the equivalent present value of the following series of payments: $10,000 the first year,…
A: Calculate the equivalent present value as follows:
Q: How many semi-annually payments will it take for $550.00 deposited at the end of each half year to…
A: Future value (FV) = $12500.00 Semi annual deposits (PMT) = $550 Compounding per year (C/Y) = 12…
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A: Let the equal payments = X The payments are to be made in year 2, 4 and 7. Interest rate = 4.5%…
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A: The time value of money is a concept that is applied while computing the present worth of the money…
Q: What single payment at the end of year 5 is equivalent to an equal annual series of payments of…
A: future value of lumpsum payment : fv=A×1+rn Future value of annuity: FVA=A×1+rn-1r therefore, r =…
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A: The installment amount can be calculated with the help of present value of annuity function.
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A: Compounding refers to the power of increasing the interest on the total investment . It actually…
Q: If $8000 is deposited at the end of each half year in an account that earns 6.2% compounded…
A: The future value of a cash flow is the future worth of a cash flow at a certain rate of interest and…
Q: Two payments of $12,000 and & 3,400 are due in 1 year and 2 years, respectively. Calculate the two…
A: Discounting is a technique to compute present value (PV) of future cashflows by considering…
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A: Solution Concept To get the present value of the future values , we need to discount the future…
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A: The given problem can be solved using PV function in excel. PV function computes present amount for…
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A: Given information: Initial amount is $10,000 Decreases by $1,000 over 10 years Interest rate is 7%
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A: Here we will use the concept of time value of money. As per the concept of time value of money the…
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A: Given: Deposit amount = 300000 Interest rate = 3.9% Additional amount = 170000 New interest rate =…
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A: Deferred annuity is a type of annuity in which the payment of annuity series began after a specified…
Q: A payment of $13,735 is due in 1 year, $19,500 is due in 4 years, and $8,900 is due in 7 years. What…
A: Payment due in year 1 (P1) = $13735 P4 = $19500 P7 = $8900 Interest rate = 5.5% monthly compounded
Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…
A: Given: Interest rate = 12% Semi-annual payments = $1000 Number of years = 3 Number of payments = 3*2…
Q: A payment of $23,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…
A: Given That: P.V=$23000 Payment is done in 3 equal payment Rate of interest= 4.25% Duration= 6 years…
Q: A payment of $1,750 is due in 2 years, and $5,800 is due in 5 years. What single payment made today…
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A: The equivalent annual payment of the financial instrument is determined by dividing the present…
Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…
A: The given problem can be solved using PV function in excel. PV function computes present amount for…
Q: A payment of $2,690 was due two years ago, and a payment of $1,650 is due today. What single payment…
A: This question can be solved in light of time value of money and future value. The formula to…
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A: Future value: A nominal value of an asset or investment at a specific period with an assumed…
Q: what present amount at an interest rate of 12% compounded annually?
A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…
Q: If money earns 3.9% compounded monthly, what two equal payments, one in 1 year and the other in 2…
A: Here, Interest Rate is 3.9% Compounding Period is Monthly i.e. 12 One Payment is made in Year1…
Q: A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at…
A: Present Value Present value is the present worth of any sum of a money to be received in the future…
Q: A series of 12 annual payments of $7500 is equivalent to three equal payments at the end of years 6,…
A: Compound interest is defined as an addition of an interest to the sum of interest of the deposit or…
Q: Payments of $1300 due today and $1800 due in 1_34 years are to be replaced by a single payment four…
A: given, rate = 2% m=4 let cashflow at year 4 = A year cashflow 0 1300 1 1800 3 1800 4 1800…
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A: Here the present value of two payments to be made at the end of 7 years and 9 years should be equal…
At what effective rate, a single payment of $ 1,500.00 today is equivalent to two payments of $ 800.00 each due in 1 and 2 years respectively.
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- If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600A payment of $1,750 is due in 2 years, and $5,800 is due in 5 years. What single payment made today would be equivalent to these original payments? Assume that money earns 4.25% compounded semi-annually.
- A payment of $25,000 is due today. What three equal payments, one in 3 years, one in 5 years, and one in 6 years, would replace the original payment? Assume that money earns 3.75% compounded quarterly.What equal payments in 2 years and 5 years would replace payments of $ 37,500 and $97, 500 in 7 years and 9 years, respectively? Assume money can earn 4.14% compounded semi- annually.What equal annual payment series is requiredto repay the following present amounts?(a) $14,000 in five years at 7.5% interest compounded annually.(b) $7,500 in seven years at 6.25% interest compounded annually.(c) $5,000 in six years at 5% interest compoundedannually.(d) $20,000 in 18 years at 4.75% interest compounded annually.
- Two payments of $14,000 and $3,400 are due in 1 year and 2 years, respectively. Calculate the two equal payments that would replace these payments, made in 3 months and in 4 years if money is worth 10.5% compounded quarterly.A loan of $3137 borrowed today is to be repaid in three equal installments due in one-and-a-half years, three-and-a-half years, and five-and-a-half years, respectively. What is the size of the equal installments if money is worth 9.2% compounded quarterly?Two payments of $12,000 and & 3,400 are due in 1 year and 2 years, respectively. Calculate the two equal payments that would replace these paymemts, made in 9 months and in 4 years if money is worth 7% compounded quarterly.
- What equal annual payment series is required to repay the following present amounts? Working need to be done on excel file $25,000 in 6 years at 3.0% interest compounded annually. $9,500 in 7 years at 7.0% interest compounded annually. $21,500 in 5 years at 12.0% interest compounded annually. $1,000 in 15 years at 6.0% interest compounded annually.A loan of $4282 borrowed today is to be repaid in three equal installments due in one year, three years, and five-and-a-half years, respectively. What is the size of the equal installments if money is worth 6.8% compounded semi-annually?A loan of $5514 borrowed today is to be repaid in three equal installments due in one-and-a-half years, three years, and five -and-a-half years, respectively. What is the size of the equal installments if money is worth 2.3% compounded monthly?