Determine the present value P that must be invested to have the future value A at simple interest rate r after time t. A = $9000.00, r = 15.0%, t = 6 months (Do not round until the final answer. Then round up to the nearest cent as needed.)
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- (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%Determine the present value, P, you must invest to have the future value, A, at simple interest rate r after time t. Round answer to the nearest dollar. A=$878.00, r=13%, t=9 months
- Determine the present value, P, you must invest to have the future value, A, at simple interest rate r after time t. Round answer to the nearest dollar. A=$5,000, r=8.2%, t=5 yearsDetermine the present value P you must invest to have the future value A at simple interest rate r after time t. A= $4000.00 r=13.0% t=39 weeksAn interest rate is 12% APR when measured using semiannual compounding. What is the equivalent rate when measured using continuous compounding? How much will $100 grow to in 3 years if it's invested at 12% APR with semiannual compounding? Is that more, less, or the same as it will grow to over the same period using the continuously compounding equivalent rate? Group of answer choices 11.33%; $140.49; same 11.33%; 140.49; less 11.65%; $141.85; same 11.65%; 141.85; less
- What is the value of the continuously compounded nominal interest rate r if the present value of 104 to be recieved after one year is the same as the present value of 110 to be received after two years? Please solve by hand and show all the steps of answer in order me to understand it at best :)Give your answer to this question correct to the nearest rand. Phindile invests R12 795,00 now and RX in eight months’ time. The investment earns interest at an interest rate of 11% per annum, compounded monthly. Phindile’s goal is to have R21 592,00 after one and a half year. What is the value of X? Explain the formulae usedIf the current rate of interest is 6% APR, what is the future value of an investment that pays AED 15,000 every two years and lasts 20 years. Please solve step by step method without using excel
- What is the present value of $1,200 due in 14 years at a 5 percent interest rate and 11 percent interest rate? Do not round intermediate calculations. Round your answers to the nearest cent. Present value at 5%: $ Present value at 11%: $ Explain why the present value is lower when the interest rate is higher. The less interest you can earn during an investment period, the less you need to invest today to receive a particular amount in the future. The more interest you can earn during an investment period, the less you need to invest today to receive a particular amount in the future. The more interest you can earn during an investment period, the more you need to invest today to receive a particular amount in the future.find the present value of $ 4000 due after five years if the interest rate is 10% compounded quarterly A). specify FV=? n=? r=? t= ? B). Find PVf ) You are evaluating a scenario that involves receiving a series of 50 annual payments , starting two years from now . The initial payment of $ 300 will be followed by payments growing with a geometric gradient of g = 0.5 % . Given an interest rate of 5.5 % , what is the present value ( P ) of the series ?
