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 years
Q: You and a friend are discussing the return on an account with an initial balance of $100 and an APY…
A: The simple interest is calculated based on the principal balance only. Thus, an equal amount of…
Q: ou invest $1,400 today and expect to sell your investment for $3,200 in 10 years. a-1. Calculate…
A: PV is used to calculate the existing worth of future cash flows for decision making.
Q: Calculate the Future value with continuous Compounding when the Principal is $ P, nominal rate is j,…
A: The more the number of compounding periods the more is the future value of the investment.
Q: You are evaluating a scenario that involves receiving a series of 50 annual payments , starting two…
A: According to the time value of money, the present worth of future money represents its discounted…
Q: The amount of money originally put into an investment is known as the present value P of the…
A: The concept used:
Q: Find the FV of $1,000 invested to earn 12% after 6 years. Round your answer to the nearest cent.…
A: Present Value = $1,000 Interest Rate = 12% Time Period = 6 Years
Q: You are currently investing your money in a bank account which has a nominal annual rate of 7…
A: The future worth means the amount that is to be received after a certain specified period of…
Q: Mark plans to invest $9,200 into a savings account with a 6% annual interest rate compounded…
A: The time period or the number of years (NPER) refers to the time it would require for the investment…
Q: Suppose initially that two assets, A and B, will each make a single guaranteed payment of $400 in 1…
A: For A: ROA = (Future price / current price) - 1 Future price : $400 Current price : $280…
Q: Determine the amount P that you should deposit into an account 2 years from now, in order to be able…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: Consider the following investment project. Calculate the net future worth of this investment at 6%…
A: Future worth of investment is future value of cash flows less future value of initial investment if…
Q: Determine the present value P you must invest to have the future value A at simple interest rate r…
A: P = A/ (1+rt) Where, A = Future value P = Present value r =rate of interest t = time
Q: What is the present value of $4,000 to be received after 5 years, discounted at 5%?
A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: Suppose you wish to have $18500 in 5 years. use the present value formula to find out how much you…
A: Given data; Future value = $18500 Number of years = 5 Interest rate = 9% compounding frequency = 2
Q: How much money would you have at the end of 15 years if you initially invested $7,500 at a nominal…
A: Concept. A = P (1 + r)n Where A = amount including compound interest. P = principal amount R = rate…
Q: Determine the present value, P, you must invest to have the future value, A, at simple interest…
A: Present value can be calculated using following formula of simple interest = final amount…
Q: Consider an investment which pays 1.05 times your original payment (which is not returned) after two…
A: The return on any investment is given by R = (F - P)/P * 12/n Where P = value invested F = value…
Q: Consider a loan repayment plan described by the following initial value problem, where the amount…
A:
Q: Find the future value of OMR10,000 invested now after five years if the annual interest rate is 8…
A: FUTURE VALUE FORMULA: simple interest : future value = present value ×1+N ×r compounding: future…
Q: What is the present value of $25,000 to be received in 15 years at an (A) 6.2% interest rate and (B)…
A: Present value is computed as: Present value =Future value1+ interest ratenumber of years
Q: Assume you can earn 9.5% per year on your investments. a. If you invest $200,000 for retirement at…
A: Annual interest rate = 9.5%
Q: An investment will pay you $40,000 in 11 years. If the appropriate discount rate is 6.7 percent…
A: Present value is calculated by discounting the future cash flow using the appropriate discount rate.…
Q: Chris offers you an investmet where if ou investment where if you invest $1,000 today, he'll return…
A: The rate of return can be calculated as: R= (Maturity amount- Initial investment)/ Initial…
Q: A. Which of the following investments is worth the most to a rational investor, and why? Assume the…
A: Year Cash flow ($) PVF @10% PV of Cash flow ($) 1 $100 0.9091 90.91 2 $500 0.8264 413.20 3…
Q: Calculate the future value of $4,000 in 5 years at an interest rate of 6% per year. (Round to the…
A: The worth of a current asset at a predetermined time depending on an estimated rate of growth is…
Q: You invest $1000 into an account that accrues interest monthly at a rate of 0.16%. (a) How much…
A: The future value of a cash flow is the future worth of a cash flow at a certain rate of interest and…
Q: What is the future value of $400 deposited for one year earning an interest rate of 9 percent per…
A: Amount Deposited = $400Interest Rate = 9%Period = 1 year
Q: What is the present value of the following future amounts? a. $800 to be received 10 years from now…
A: Summary of information Case Future value Period in years Discount rate a 800 10 10% b 300 5…
Q: Suppose that $1,000 is invested at 6% interest compounded continuously. Use the formula A = Pert.…
A: a) A = P * e^(rt)
Q: You have OMR800 that you would like to invest. You have 2 choices: Savings account A which earns 8%…
A: Effective interest rate of an investment increases with the increase in the number of compounding.…
Q: If $7,000 is invested at 9.5% compounded continuously, find the future value after 4 1/2 years.…
A: Investment (PV) = $ 7000 Interest rate (r) = 9.5% Compounding = Continuously Period (t) = 4.50 Years…
Q: Determine the present value P that must be invested to have the future value A at simple interest…
A: Given: Future value (A) =$5000.00 Rate (r) = 15% = 0.15 Time t=312=0.25
Q: What is the future value of $14,000 invested for one year at an interest rate of 5% p.a.?
A: Future value (FV) is the technique to calculate the future value of a current investment at some…
Q: A broker wants to sell a customer an investment costing $100 with an expected payoff in one year of…
A: Answer:- Expected return meaning:- The expected return can be defined as the profit or loss an…
Q: Solve the following problem using the present worth analysis for an interest rate of 8%. Alt. A Alt.…
A: Present worth is the present value of cashflow discounted at 8%
Q: a. How much would you have to deposit today if you wanted to have $66,000 in four years? Annual…
A: These questions are based on time value of money, which states that a dollar won't have same value a…
Q: Use the present value formula to determine the amount to be invested now, or the present value…
A: Present value is the current value of future cash flows at a given rate. It is given as: PV = FV1+rn
Q: nt Use the compound interest formulas A= P 1+ and A = Pet to solve the problem given. Round answers…
A: d. Calculation of accumulated value if money compounded continuesly
Q: ow your solution The present worth of $5,000 in year 3, $10,000 in year 5, and $10,000 in year 8 at…
A: In this we need to find out the present value of all options.
Q: Calculate, to the nearest cent, the present value of an investment that will be worth $1,000 at the…
A: In finance, the term future value shows a dollar sum expected to be received at some point in the…
Q: Bruce invested $1,250 (present value - enter as a negative number) 10 years ago. Today, the…
A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: What is the present value for a future value of FV=$500,000 at time t=36 if the interest rate is…
A: Since you have asked multiple questions , we will solve the first question for you. If you want any…
Q: DETAILS Find the present value, using the present value formula and a calculator. (Round your answer…
A: Simple Interest Interest Rate = 4.5% Future Value Required = 8000 Time Period = 3 years
Q: a) What would be the accumulated value of ₺ 100.000 in a saving account at 8% per year for 5 years…
A: Amount = 100000 Interest Rate = 8% Years = 5 for compound interest rate Years = 9 for simple…
Q: You can choose to take $105,000 in 11 years or $47,000 today. At an interest rate of 9 percent, what…
A: Present value = Future cash flow / ( 1 + Interest rate )
Q: Find the missing values assuming continuously compounded interest. (Round your answers to two…
A: a) Initial investment (P) = $2000 r = 2.6% Let n = Time to double P
Q: Consider the following alternatives: i. $100 received in one year ii. $230 received in 5 years iii.…
A: Present Value = Future Value(1+i)n where, i= Interest rate n= period
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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 monthsDetermine 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 weeksUsing the image attached to answer the following questions. 4) Suppose you invest $14,500 some place with continuous compounding at a 6.5% interest rate for 10 years. How much money will you have? (2 decimal places) 5) Suppose you have $3800 that you invest at a 5% interest rate compounded continuously for 35 years. How much money will you have? (2 decimal places) 6) F(4) = 183.07 when r = 0.04 for the function f(t) = pe^rt, then what is the approximate value of P?
- You are currently investing your money in a bank account which has a nominal annual rate of 7 percent, compounded monthly. How many years will it take for you to double your money? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Must identify variables and use excelYou are currently investing your money in a bank account which has a nominal annual rate of 7 percent, compounded monthly. How many years will it take for you to double your money? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Identify variables and use excelProvided are links to the present and future value tables: (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.) a. How much would you have to deposit today if you wanted to have $66,000 in four years? Annual interest rate is 9%. b. Assume that you are saving up for a trip around the world when you graduate in two years. If you can earn 8% on your investments, how much would you have to deposit today to have $18,500 when you graduate? (Round your answer to 2 decimal places.) c-1. Calculate the future value of an investment of $787 for nine years earning an interest of 10%. (Round your answer to 2 decimal places.) c-2. Would you rather have $787 now or $1,800 nine years from now? d. Assume that a college parking sticker today costs $94. If the cost of parking is increasing at the rate of 5% per year, how much will the college parking sticker cost in eight years? (Round your answer to 2 decimal…
- Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of the third year. How much will you have at the end of the fourth year if interest rates are 5% p.a.? Select one: a. $3,405.54 b. $3,310.12 c. $3,215.41 d. $3,100,21Use the formulas A = P(1 + r/n)nt and A = Pert to solve this problem. You decide to invest $6000 for 5 years and have a choice between two accounts. The first pays 4% per year compounded monthly. The second pays 3.5% per year compounded continuously. Which is the better investment? By how much? Round to the nearest dollar.Please calculate this below (incl. the formula):a. What do you get at the end, if you save $100 for 8 years with 15% interest rate?b. What is PV of $100 received in year 10, with 1% discount rate?c. Hans made investment $10 million with interest rate 6% per annum. What is the value of Hans's investment after 4 years and interest compound annually.
- What is the present value of $3,000 received a. 10 years from today if the interest rate is 4% per year? b. 20 years from today if the interest rate is 8% per year? Question content area bottom Part 1 a. The present value is $enter your response here. (Round to the nearest cent.) b. The present value is $enter your response here. (Round to the nearest cent.)Suppose $100 is invested at the end of each year for the next 5 years into an account paying an interest rate r% p.a. How much can be drawn at the end of the 5 years?Approach(i) The first $100 is contributed in one year’s time and has to wait 4 years to “mature”. Write an equation describing this.(ii) The second $100 is contributed in two year’s time and has to wait 3 years to “mature”. Write an equation describing this.You purchased an FRN with a maturity of 7 years, pays USD SOFR annually, and has a face value of USD 6m. At the time SORF was equal to 1.39%. Three years later you check the news and you see that SORF is 4%. What is the value of your investment? (please type in your answer rounded to the nearest dollar: e.g. 4,500,009.02 should be entered as 4,500,009)