Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years. Draw a timeline for this question and solve? Timeline is compulsory.

Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years. Draw a timeline for this question and solve? Timeline is compulsory.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 7Q

See similar textbooks

Related questions

Q: The present value of $77,000 to be received in 2 years, at 12% compounded annually, is (rounded to…

A: Given that Future value = 77000 Time (n) = 2 years Rate (r) = 12 %

Q: .If $1000 is deposited at 12.5% p.a. for one year, what is the effective annual interest rate if…

A: Given, The amount deposited is $1000 The annual rate is 12.5%

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: d. At the end of three years, how much is an initial $100 deposit worth, assuming a quar- terly…

A: Future Value is the worth of investment in the future period at the given interest rate. Keeping…

Q: 2. You are comparing two annuities which offer monthly payments of $1,000 for five years and pay 1.0…

A: The combination of payments which are generated for a common period with defined difference with two…

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: Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is,…

A: Annuities due is that type of annuity in which payments are made at the start of each period. Here…

Q: At a certain interest rate compounded semiannually, ₱5,000 will amount to ₱20,000 after 10 years.…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: Consider the followingalternatives: i. $120 received in one year ii. $220 received in five years…

A: The present value method is used to find out the profitability of a project by adding up discounted…

Q: If $1000 is invested for ten years at an annual rate of 7.3% compounded monthly.…

A: given information present value = $1000 time period = 10 years interest rate = 7.3% annum

Q: What is the present value of a $90,000 annual annuity for 10 years with an additional $1,000,000…

A: The present value of investment is the sum of present value of annuity and the present value of…

Q: 1. Determine the present value of $1,500 to be received at the end of 10 years if the compound rate…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS Problem 1 Find the final value (FV or…

A: Future Value(FV) or Final Value is the worth of current invested amount after certain period of…

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: Assume that you are going to receive $690,000 in 10 years. The current market rate of interest is…

A: a. Present value of this amount to be received after 10 years = Amount to be received x Present…

Q: a. What is the present value of 15 annual payments of $100, with the first payment one year from…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Given below are the future value factors for 1 at 10% for one to five periods. Interest is…

Q: To find the present value of a sum of sh. 10,000 to be received at the end of each year for the next…

A: The present value (PV) is the value of today's payment that is promised to be made in the future.…

Q: (a) Find the present value of $12,500 to be paid 5 years from now when the interest rate is 10…

A: Answers are provided one by one in each step.

Q: consider a $5,600 deposit earning 10 percent interest per year for 10 years. What is the future…

A: Deposit amount = $ 5,600 Interest rate = 10% Period = 10 Years

Q: Given the down payment of P18,877 and annual payment of 28,657. The number of years is 20 years and…

A: Down payment (DP)= P 18,877 Annual payment (P) = 28,657 Number of annual payments (n) = 20 Discount…

Q: What is the present value of ₽5,000 payable semi-annually for 10 years if money is worth 9%…

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

Q: 2. At an effective annual interest rate i, the present value of $20 per year, payable at the…

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

Q: What is the present value of $11,000 to be received in two years if the interest rate is 5% p.a.?…

A: given future value = 11000 Years = 2 rate = 5%

Q: 2. What's the present value of $25,000 received after 5 years if the appropriate interest rate is…

A: using the PV function

Q: At an effective annual interest rate i, the present value of S10 per year, payable at the beginning…

A: In finance, the time value of money rule states that the sum of money today has more purchasing…

Q: Find the present value of an annuity P10,000 payable at the en quarter for 5 years if the rate of…

A: Present value of annuity can be found from the present value factor and annuity payment.

Q: What is the present value of $8,000 received 10 years from today when the interest rate is 4% per…

A: The payment amount which is expected to receive in future is discounted for the period between today…

Q: What are the present worth and the accumulated amount of a 10 year annuity paying P10,000 at the end…

A: In this we need to calculate the present value of annuity.

Q: 2. The following are exercises in present values: a. $100 at the end of three years is worth how…

A: We need to find the present values of the cashflows for part (a) to part (c). Let CFn be the…

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: Present value of amounts due Assume that you are going to receive $ 50,000 in 10 years. The…

A: Present value is a concept in the time value of money that states that cash flows in the future are…

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

A: Calculation of the total amount accumulated after 10 years: Calculation with formulae:

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: What is the present value of $10,000 that is to be received in 9 years, if the discount rate is 7%…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: Find the present value of a deferred annuity of P30000 every three months for 3 years that is…

A: a. Determine the value of the fund after 1 year using the Excel PV function with the following…

Q: g What is the füfüre compounded at 10 percent? What would be the future value if it were an an-…

A: Answer g: Information Provided; Term = 7 years Rate = 10% Payment = $1000

Q: 4. What's the present valueof $10,000 received after 10 years if the appropriate interest rate is…

A: Using the PV function

Q: What is the present value of 500 received at the beginning of each year for 15 years? (Assume the…

A: Given: Present value = 500 Years = 15 Discount rate = 10%

Q: 1- How much money should you be willing to pay now for a guaranteed $600 per year for 8 years…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: What is the value today of receiving $8,000 at the end of each six-month period for the next four…

A: Annuity refers to series to equalized payments that are either made start or end of specific…

Q: What is the present value annuity due of RM2,000 with a 10 percent discount rate for 10 years?…

A: using the PV function in excel

Q: rate of interest, compounded annually, will result in the receipt of $15938.48 if $10000 is invested…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

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

Q: Ineed to answerthese questionscan you help me out, Questions 4,5 4- What is the current value ofthe…

Question

A. Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years. Draw a timeline for this question and solve? Timeline is compulsory.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Trending now

This is a popular solution!

Step by step

Solved in 7 steps with 8 images

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 $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.
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
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%
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.
If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
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?
Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?