Answered: F=19803 5% 10% 15% $2X $3X $3X Select…

Business

Finance

F=19803 5% 10% 15% $2X $3X $3X Select one: O a. 3500 O b. 2000 O c. 10000 O d. 3000 O e. 5000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...

See similar textbooks

Related questions

Q: You are paying $1,500 monthly for 10 years with an the interest rate of 12% compounded continuously,…

A: Future Value Annuity amount (PMT)= $1,500 monthly= $18,000 yearly Time period (n)= 10 years Interest…

Q: Assume that you are going to receive $290,000 in 10 years. The current market rate of interest is…

A: Formula: Present value = 1 / ( 1 + r )N R = Rate of interest N = Number of years

Q: Present Value of Amounts Due Assume that you are going to receive $460,000 in 10 years. The current…

A: Present value of a single cashflow = C/(1+r)n Where, C = future cashflow =$460000 r = interest rate…

Q: (a) What is the present value of a deposit that will earn 3% p.a. compounded quarterly for the next…

A: Using excel PV and RATE function

Q: If you are expecting to get OMR 11240 at the end of 9 years; calculate its present value if the…

A: Future Value =OMR 11240 Years =9 Interest Rate =2.24% Monthly Interest Rate(r) =2.24%/12 =…

Q: Given an interest rate of 4.8 percent per year, what is the value at date t = 10 of a perpetual…

A: Note: The payments start at t = 20, indicating perpetuity payment made at the end of t = 19. This…

Q: Which of the following is an incorrect equation of value for this problem.

A: Time value of money (TVM) means that the money received today fill be worth more than the money…

Q: 1. If you deposit $10 in an account that pays an interest of 5%, compounded annually, how much will…

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

Q: You deposit $1,000 one year and $2000 next year starting year 1 until year 30 with an interest rate…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: What is the present value of $4000 to be received in 6 years, if the interest rate is 5% p.a.,…

A: The future value (FV) is $4,000. The interest rate is (RATE) is 5%. The maturity (NPER) is 6 years.…

Q: You deposit $100 today, $200 one year from now, and $300 three years from now. How much money will…

A: The concept of the time value of money states that the same amount of money today is worth more than…

Q: If you invest 5000 dollars today at a compound interest rate of 9 percent, what will be its future…

A: FUTURE VALUE FORMULA: FV= PV ×CVIFR,N FV = FUTURE VALUE PV = PRESENT VALUE

Q: If you are expecting to get OMR 56775 at the end of 3 years. Calculate its present value if the…

A: When interest is compounded multiple times: Present value = Future value/(1+r/m)n*m r is interest…

Q: Assume you make a deposit of $7,500 now into a saving account that pays 12% per year, compounded…

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Q: If you want to withdraw $4500 in each year for the next 5 years when the interest rate is 20%, what…

Q: What's the future value of $15,000 after 11 years if the appropriate interest rate is 10.75%,…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: What is the present value of a perpetuity (no maturity date) with a constant coupon payment of $100…

A: Present value of perpetuity = Coupen payment / Interest rate

Q: What compound interest rate j,, is equivalent over 4-year period to a simple interest rate of 2.24 %…

A: Given Information: Time Period = 4 years First year simple Interest rate = 2.24% For balance three…

Q: If you are expecting to get OMR 4900 at the end of 5 years. Calculate its present value if the…

Q: i need the process What is the present value of $1,485,120.00 given an interest rate of 4.5%…

A: Look I understand you need to know the process I will explain you Given information in this question…

Q: At a compound interest rate of 10% per year, the amount that $10,000 one year ago is :equivalent to…

A: Compound Interest Compound interest is the interest computed on the initial principal amount as…

Q: 26 27 28 29 30 5% I 7% I5% 7% 5% I 7% 5% I %7 2000 1000 2000 1000 1000 2000 1000 2000 1000 2.

A: Sum of Geometric Progression =[a(rn−1) ] / ( r−1 ) a = first term r = common ratio

Q: If you want to withdraw $4500 in each year for the next 5 years when the interest rate is 20%, what…

A: Annual withdrawal (C) = $ 4500 Interest rate (r) = 20% Period (n) = 5 Years

Q: if you invest $1,000 today With a compound annual interest rate of 5 %. What is the total amount…

A: Future value of money refers to the value of money on a particular date in the future. In other…

Q: If you invest $12,000.00 today, how much will you have in the future under each of the following…

A: Future value of money is the amount which is forecasted by using the time, rate and the present…

Q: You have received a bonus of $20.000 that you will invest all now. Approximately, what would be the…

A: Using excel FV function

Q: You are looking at an investment that will pay $1200 in 5 years if you invest $1000 today. What is…

A: Here, Investment Amount (PV) is $1,000 Accumulated Amount (FV) is $1,200 Time Period (n) is 5 years

Q: The formula for finding the present value of an amount M that will be received one year from now,…

A: The time value of money concept is the financial concept that is used to determine the present…

Q: You will receive $1000 from a savings bond in3 years from now. The nominal interest rate is 8% and…

A: Future value is the value of present cashflow compounded at a given rate to future date. formula:…

Q: Tommy John is going to receive $370,000 in three years. The current market rate of interest is 7%.…

A: Present Value(PV) is computed by discounting future amount using discount rate that is yet to…

Q: Indicate whether the given statements is true (T) or false (F): "$1,791 10 years from now is…

A: Present Value is the current value of the future sum of money at the specific rate of return.

Q: If you are expecting to get OMR 11240 at the end of 9 years; calculate its present value if the…

A: Given Information: OMR = 11,240 Interest rate = 2.24% Computed yearly

Q: Assume that you are going to receive $350,000 in 10 years. The current market rate of interest is…

A: Present value of amount to be received in 10 years = Amount to be received x Present value factor…

Q: You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate…

A: The correct option is e. 18050

Q: For each of the following situations involving single amounts, solve for the unknown (?). Assume…

A: The present value of $24,836 is the result of multiplication of the future value, $40,000 with the…

Q: What's the future value of $1,225 after 5 years

A: Future value (FV) refers to a method of calculating how much the present value (PV) of an asset or…

Q: What is the value of the following payment stream 1 year from now, at a simple interest rate of…

A: solution Given Simple interest rate =4.4% Amounts $10000 ,3 years ago $6000 ,1.25 years ago…

Q: You have €1200.- to invest today. Assume you buy a savings plan that will give you 5.5% interest…

A: Investment = 1200 Nominal Interest rate = 5.5% Average Inflation = 3%

Q: If you are expecting to get OMR 10240 at the end of 3 years. Calculate its present value if the…

A: Present value of an investment refers to the sum amount of money that will be required today in…

Q: You deposit $8000 in year 1, $7500 in year 2, and amounts decreasing by $500 per year through year…

A: Given Details: Amount deposit in year 1 =$8,000 Amount deposit in year 2 =$7,500 Time period = 15…

Q: If the interest payments are done semi-annually, what is the initial investment to be so that 6…

A: Semi-annual interest rate (r) = 26%/2 = 13% = 0.13 Number of semi-annual periods = 6 years x 2 = 12…

Q: What is the present value of $600 you expect to receive in 3 years if the interest rate is 12%…

A: given, fv = $600 n = 3 years r = 12%

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: If you are expecting to get OMR 45847 at the end of 3 years. Calculate its present value if the…

A: Future Value after 3 years = OMR 45847 Interest Rate =9% Years =3 Interest Rate quarterly(r) =9%/4 =…

Question

You deposit $2X today, $3X one year from now and $3X two years from now. If there are different annual compounding interest rates per period as shown in the diagram below and if you had $19803 at the end of year 3, what is the value of X?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Formula

VIEW

Calculation

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
(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%?
Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?
You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate of 5% one year and 7% other year. How much money will you have at the end of year thirty if there are different interest rates after year 30 as shown in the diagram below? Select one: a. 18050 b. 90000 c. 106141 d. 120408 e. 117724
You purchased an FRN with a maturity of 7 years, pays USD SOFR annually, and has a face value of USD 2m. 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)
You plan on withdrawing monthly payments for the next ten years and have deposited $100,000 inan account. If the rate of return is 8% compounded monthly, determine the value of the monthlywithdrawals.Possible answers: A) $1,613.28 B) $1,413.28 C) $1,213.28 D) $2,013.28 E) $1,813.28