Determine the present value of a series of 30 quarterly payments of $3,500 each which begins one monthfrom today. Assume interest of 8.25 percent per year compounded monthly.

Q: Rounded to the nearest cent, find the amount of money accumulated in 5 years if $14000 is invested…

A: Given information: Present value amount is $14,000 Number of years is 5 years Interest rate is 10%

Q: For an interest rate of 16 percent per year compounded semi-annually, determine the effective…

A: In this we have to determine interest rate for different situation.

Q: Find the amount of an annuity that consists of 20 quarterly payments of $700 each into an account…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: Find the present value of the following annuities: 500 payable semi-annually for 10 years if the…

A: Solution:- When an equal amount is paid each period, it is called annuity. Present value of annuity…

Q: Find the present value of the following annuities: 1. 100 payable every month for 10 years if the…

A: Present value is referred as the current value of future sum of funds or the cash streams that are…

Q: The present value of an annuity is 16,950. Quarterly payments of 369 are made from 16,950 that is…

A: Present value of annuity (PV) = 16950 Quarterly payment (C) = 369 Annual interest rate = 4%…

Q: Find the future value if $2700 is invested for 7 years at an annual rate of 9% compounded quarterly.

A: If the money deposited in the account is left untouched it will end up growing into a larger balance…

Q: Find the present value and the compound discount of $6 600.00 due in seven years, three months, if…

A: It is given that,Future value is $6,600.Interest rate is 7.2% compounded quarterly. So, interest…

Q: The Present worth (PW) of six annual payment of $6000 paid at the end of the each of the six years…

A: Annual payments of $6000 Time period is 6 years Interest rate is 12% Compounded Quarterly To Find:…

Q: Determine the future value of $10,000 under each of the following sets of assumptions: Interest…

A: Future value: It is the value of money or asset for a specific period at a future date based on rate…

Q: Find the present value of $10,000 payable in 10 years if the interest rate is 5 percent per year…

A: Time value of money  Time value of money is a core principle of finance according to which money is…

Q: d) You expect to make 12 semi-annual payments of $ 5,000 each at the rate of return of 5%…

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

Q: If $84,000 is invested in an annuity that earns 5.2%, compounded quarterly, what payments will it…

A: Investment (PV) = $84000 Interest rate = 5.2% Quarterly interest rate (r) = 5.2%/4 = 1.30% Period =…

Q: Calculate the future value of an ordinary annuity where $360 is deposited and compounded quarterly…

A: The ordinary annuity of the payments would be considered as payment made at the end of the year, and…

Q: If 39600 dollars is invested at an interest rate of 9 percent per year, find the value of the…

A: Given: PV (Present Value ) =$39600Interest rate(i) =9% per yearNo. of years (n) =5 Abbreviation:FV…

Q: Suppose you deposit $1,250 at the end of each quarter in an account that will earn interest at an…

A: Computations as follows: Hence, the amount available at the end of four year is $24,225.28.

Q: Find the AV of $3,500 at the end of 10 years at an annual effective interest rate of 4.9% for the…

A: Given Information: Future value is $3500 Annual effective rate for 3 years is 4.9% For remaining…

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

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: compute the nominal quarterly interest rate at wich payments of $250 made at the end of each quarter…

A: in this problem we have to calculate future value FACTOR and from that we can get quarterly interest…

Q: What is the future value of $800 deposited each year for six years, compounded annually at 10…

A: RATE  10% NPER (n)  6 PMT 800

Q: You deposit $201 at the end of each quarter into an account that pays a nominal annual rate of 16%…

A: The account value at end of 15 years can be calculated with the help of future value of annuity…

Q: If $86,000 is invested in an annuity that earns 5.6%, compounded quarterly, what payments will it…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: At the end of each quarter-year, for 6 years, $1,200 is deposited into an investment paying 3.4%…

A: At the end of each quarter-year, for 6 years, $1,200 is deposited into an investment paying 3.4%…

Q: Find the present and the future value of quarterly payments of $2,000.00 for 5 years with interest…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: Find the present value of the following annuities: 100 payable every month for 5 years if the…

A: Present value (PV) also termed as current value refers to the sum of all future cash flow (CF) or…

Q: Determine the present value and total amount of an annuity with 6 payments of P120,000 each made at…

A: The interest is compounded quarterly at rate of 3.75%.

Q: Calculate the compound amount (in $) on an investment of $5,500 at 10% interest, compounded…

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

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: Find the lump sum deposted today that will yeld the same total amount as payments of $13.000 at the…

A: Present Value of Annuity: With respect to annuities, the present value of a contract is the current…

Q: Calculate the dollar amount that would be in a savings account at the end of 5 years, given an…

A: Initial investment (P) = 701 dollars Rate of interest (i) = 2.76% (Compounded monthly) Time period…

Q: If $12,000 is invested at an interest rate of 10% per year, find the amount of the investment at the…

A: Given:

Q: Calculate the initial amount that would be in a savings account at the beginning of 6 years, given a…

A: Given  Interest rate =  3.14% Number of years = 6 Years Final amount received = 256 Future value is…

Q: Find the present value of a series of 15 monthly payments that start with $5,000 at the end of a…

A: Discount rate is 30% nominal monthly Monthly rate is  30%12=2.5% Total number of payments are 15…

Q: For 10 years with total payments of $ 10000 per year, calculate the total amount accumulated after…

A: Total payment per year = $10,000 = P Time period = 10 years = n  Annual interest rate = 20% = R…

Q: What is the present value of $250 annual payments received at the end of each of the next five…

A: Discounting is a technique to compute the present value (PV) of a future amount by using the…

Q: Find the future value of an annuity due of $100 each quarter for 2 1/2 years at 12% compounded…

A: Formula: FV = { P [ ( 1 + r )N - 1 ] / R } ( 1 + r ) P = Principal value R = Interest.

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: An annuity that pays $950 at the end of each month for 18 years sells for $105,000 What was the…

A: Quarterly Compounded Nominal Interest Rate: Quarterly compounding outperforms semi-annual…

Q: If $87,000 is invested in an annuity that earns 5.6%, compounded quarterly, what payments will it…

A: The interest rate is 5.6%, compounded quarterly. Interest rate per quarter is (5.6% ÷ 4) = 1.4%. The…

Q: If 10700 dollars is invested at an interest rate of 5 percent per year, find the value of the…

A: Compounding is a technique through which future amount of present value is calculated by using…

Q: Find the lump sum deposited today that will yield the same total amount as payments of 250 at the…

A: This is a case of determining present value of an annuity.  Annuity value (FV) = $250 Number of…

Q: Determine the value of an ordinary annuity if $290 is deposited each month into an account earning…

A: In order to find the future value of an annuity, one can use excel and use FV function to determine…

Q: What quarterly compounded nominal interest rate is earned on payments of $215 paid at the beginning…

A: An annuity is a payment plan where a fixed recurring amount is paid in return for a lump sum amount.…

Q: what is the present value of $800 to be received at the end of eight years assuming an interest rate…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: What is the future worth of a series of equal monthly payments of $2,000 if the series extends over…

A: Use the following formula to calculate the effective interest rate (EIR). Where i is the effective…

Q: What is the future worth of the following seriesof payments?(a) $75,000 at the end of each six-month…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

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.