Calculate the present value of $5,000 received five years from today if your investments pay 6 percent compounded annually 8 percent compounded annually 10 percent compounded annually 10 percent compounded semiannually 10 percent compounded quarterly What do your answers to these questions tell you about the relation between present values and interest rates and between present values and the number of compounding periods per year?

Q: Don’s investment amounts to ₱9,800 after 5 years and ₱12,005 after 8 years at the same rate of…

A: Final value after 5 years = P + P*r*5 = 9800....i Final value after 8 years = P + P*r*8 =…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: Given, FV of investment is $1000 Time is 3 years rate is 4% depreciating each year

Q: Compute the missing variable for each of the following alternatives of investments to accumulate…

A: The present value can be converted the future value using the technique of compounding, while the…

Q: Determine the accumulated value, after five years, of an investment worth ₱12,300.00 if the interest…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: If you have PhP 5,000.00, which of the following investment alternatives would provide the greatest…

A: We will calculate wealth for each alternative,  Part A) 72/100 % = .72% simple interest  Value After…

Q: Annual investments of $1200 are to be made at a savings and loan institution for 10 years beginning…

A: Annual Savings = 1200 End of year savings Nominal Rate = 5% Quarterly Compounding N = 10 years…

Q: Compare the investment below to an investment of the same principle at the same rate compounded…

A: In this question future value of the same investment is to be find out. One future value will be…

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

A: The Future Value of the investments is anticipation after looking at the market conditions and…

Q: Use the compound interest formula A=P(1+rn)ntA=P(1+rn)nt or A=PertA=Pert to solve.

A: Compound Interest is the additional interest earned on the interest of principal or loan amount,…

Q: Calculate the present value of the following annuity streams: $5,000 received each year for 5 years…

A: Answer 1. PMT = $5000 N = 5 I/Y = 6% FV = 0 CPT PV = $21,061.8

Q: Find the accumulated value of an investment of $10,000 for 5 years at an interest rate of 4.5% if…

A: Future value is the expected value of current sum in the near future.

Q: Compute the present value of the following annuity investments: 2. P5,000 quarterly investment at 6%…

A: FORMULA PVA = P*[1-(1/(1+i)n)/i] Where PVA - Present value of annuity P - Quarterly payment i.e.…

Q: Calculate the present value of the following annuity streams: $5,000 received each year for five…

A: To open the "PV function" window - MS-Excel --> Formulas --> Financials --> PV.

Q: Find the present value of $4,600 under each of the following rates and periods: (Round your final…

A: Present value is the worth of the amount in present times that is expected to be received in future…

Q: What is the future value of $200 received today and deposited at 8 percent compounded semi annually…

A: Formulas: Future value = Amount *(1+rate)^years

Q: invests $80,000 today at 10% per annum, compounded quarterly. What will the balance of Sam's…

A: Effective rate = 0.10/4    = 0.025 n = 5 * 4   = 20 Current amount = 80000

Q: Calculate the present value of the following annuity streams: $5,000 received each year for five…

A: In this question we need to compute the present value of the following annuity streams.

Q: Find the future value of an investment of $4,800 made today for the following rates and periods:…

A: The future value is resulted with the compounding of present value over the period of time. When…

Q: Calculate the future value of an annuity of $ 10,440 invested every year at 10.9% compounded…

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

Q: Find the future value (in dollars) of the investment. (Round your answer to the nearest cent.)…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  where, P= annuity amount i.e. $8000 r =rate of…

Q: Calculate the present value of $5,000 received five years from today if your investments pay: 6…

A: Given:

Q: 1. If ₱40,000 is invested for 6 years at 5% compounded quarterly. a. Find the compound amount. b.…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Find the future value in five years of an investment of $115,000 made today that earns 7.00 percent…

A: Future value = Investment * [ 1 + ( rate / Frequency ) ]years * frequency Future value for…

Q: Calculate the present value of $9,000 received six years from today if your investments pay (Do not…

A: Amount = $9,000 = Future value  Time duration = 6 years  The present value of investment is computed…

Q: What is the present value of $1,552.90 due in 10 years at (1) a 12 percent discount rate and (2) a 6…

A: Compute present value of $1,552.90 due in 10 years at 12% discount rate as shown below:

Q: What is the present worth of each given series of payments?(a) $12,000 at the end of each year for…

A: a) Hence, the present worth is $15315.38. b) Hence, the present worth is $45327.06.

Q: Find the accumulated value of an investment of $25,000 for 5 years at an interest rate of 5% if the…

A: Compounded Semi annually: Compound Interest = Principal ( 1+ r)n r = Interest = 5/2 = 2.5% N =…

Q: Compound interest​) To what amount will the following investments​ accumulate?   a. ​$4,900 invested…

A: We need to use compound interest formula to calculate accumulated amount A=P(1+i)n where…

Q: Consider the following investment. (Round your answers to the nearest cent.) $5,600 at  6 3/4%…

A: Time value of money concept says that if we invest a particular sum of money today will not have…

Q: man expects to receive ₱25,000 in 8 years. How much is hat money worth now considering interest at…

A: Given information: Future value 25,000.00 ₽ Time period 32 Interest rate 2.00%

Q: Find the accumulated value of an investment of $10,000 for 3 years at an interest rate of 5.5% if…

A: Future value =Present value *(1+rateper period)^n

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: given, Fv = $1000 n = 5 years r = -4%

Q: 1. Calculate the present value of $8,000 receive five years from today if your investment pay a. 6…

A: Using excel PV function

Q: Calculate the future value of $15,000 received today and deposited for eight years in an account…

A: Future value is the accumulated value of an investment. It is the total of the initial deposit and…

Q: What will be the amount accumulated by eachof these present investments?(a) $12,250 in 15 years at…

A: Formula to caalculate compound interest is: A = P(1+r)^n Where A is the future value, P is the…

Q: Compute the future value of the following single investments: 2. P20,000 at 8% interest compounded…

A: The future value function can be used to compute the required value after 4 years

Q: Find the future value in five years of an investment of $103,000 made today that earns 5.50 percent…

A: Future value is the expected value of the current sum at a future date.

Q: 100,000 dollars are invested in compound interest for four years from 10% annually. Find the future…

A: Calculation of future value is shown below: Hence, Future Value with continuous compounding is…

Q: Find the future value in five years of an investment of $148,000 made today that earns 10.00 percent…

A: Given, Present value =$148,000 Rate = 10%

Q: Find the future value of the investment. (Round your answer to the nearest cent.) $100 deposited at…

A: Future Value is the value of current investments at a certain future date at the assumed…

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: an amount of N$10000 is invested for 10 years at an interest rate of 6% per year compund interest.…

A: Using the FV function in excel

Q: owing investment. (Round your answers to the nearest cent.)

A: The Future Value Formula FV=PV(1+i)n  Where:  FV = future value PV = present value i = interest rate…

Q: Using the compound interest formula, calculate both the value of the investment and the interest…

A: Investment amount (PV) = $4000.00 Period = 5 Years Semi annual period (n) = 5*2 = 10 Interest rate =…

Q: An investment involves annuity of Php 1172.00 compounded 17.2 times a year at an interest 1.72%. The…

A: Here, To Find: Annual difference in annuities if the interest is compounded only once a year =?

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.