Answered: Find the value of the following, if the…

Business

Finance

Find the value of the following, if the present value is 1,100 at 9% converted annually for 58 years.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter2: Descriptive Statistics

Section: Chapter Questions

Problem 16P: If an asset declines in value from 5,000 to 3,500 over nine years, what is the mean annual growth...

See similar textbooks

Related questions

Q: What present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually?…

A: Present Value = Future value / (1+r)^n Where, r = rate of interest i.e. 8% n = no. of years i.e. 20…

Q: What is the future value of $550 invested for 5 years at 15 percent compounded annually?

A: Following details are given in the question: Present value (Investment today) = $550 Time period = 5…

Q: Consider the case where the Annual Percentage Rate (APR) is 15%. If the frequency of compounding is…

A: Annual Percentage rate = 15% Compounding = Quarterly Number of compounding per year = 4

Q: The annual maintenance cost of a generator is P1000 after 1 year and it is estimated to increase 10%…

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

Q: Annual maintenance cost for a machine is ₱25,000 for 6 years. Interest rate is 6%. If the…

A: Capital Budgeting: Capital budgeting decisions are the most important decision in corporate…

Q: What is the future value of $100 after 5 years under 12 percent annual compounding?

A: Time value of money is a concept that helps in determining the value of cash (or money) at a future…

Q: Should you buy an asset that will generate income of $1,000 per year for 10 years? The price of the…

A: YEAR CASH FLOW 0 -7500 1 1000 2 1000 3 1000 4 1000 5 1000 6 1000 7 1000 8…

Q: Find the future value of the given amount. Round the result to the nearest cent. $1200 at 5%,…

A: In finance, the effective interest rate shows the actual amount of interest to be paid or received…

Q: Determine the present value if $5,000 is received in the future (that is ,at the end of each…

A: Present Value: It is the present worth of the future annuity cash flow stream. Present value is…

Q: The annual maintenance cost of a generator is P834 after 1 year and it is estimated to increase by…

A: Annual Maintenance Cost = 834 End of period cost structure Increase in annual maintenance costs =…

Q: assuming a rate of 10% annually, find the FV of 1,000 after 5 yearas

A: The formula for the calculation of Future value is as follows: Future value=Present…

Q: What is the present value of $2,000 received today, $2,500 received at the end of each of the next…

A: Present value of cashflow for any year = Cashflow for that year/(1+ discount rate)^time Cashflow for…

Q: Find the present value of the following if the compound amount is 10,500 at 10% converted annually…

A: Present value of a compounding amount can be computed by dividing the future cash flow amount by…

Q: An investment will provide after-tax revenue of $22,336 per year for 7 years. What is the present…

A: After tax revenue (P) of $22,336 for a period (n) of 7 years will be received. Present value annuity…

Q: The maintenance cost in year 1 is $23000, increasing by 7% each year. What is the present worth of…

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

Q: What is the present value of $2,450 to be received in five (5) years if the opportunity cost rate is…

A: The provided information are: Future value (FV) = $2450 Number of years (n) = 5 Rate (r) = 9 Rate is…

Q: Find the future value of the following at a given annual rate compounded annually and the given…

Q: What is the percent value of : A) $8,000 in 10 years at 6 percent? B) $ 16,000 in 5 years at 12…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Use the graph below to answer the following questions. What is the approximate final value of…

A: Future value = Present value * ( 1 + Interest rate )time

Q: Find the Future Value for $20,000 invested every year and compounded annually for 8 years at 10%

A: Excel Spreadsheet: Excel Workings:

Q: What will be the Value of 10000$ invested @10% p.a compounded monthly for 25 years?

A: Future value is the worth of a current sum of money after a specified time span, given a fixed…

Q: The future value of $500 to be received at the end of each year for seven years at adiscount rate of…

A: Computation of future value:Therefore, the future value is $4,461.40.

Q: Find the present value that will generate the future value $4,459 at 10¾% compounded quarterly for 4…

Q: What annual rate of return is earned on a $1,000 investment when it grows to $2,700 in eight years?

A: Future value is the value of assets at a future date given a growth rate. This is used for financial…

Q: singlê investment made today, earning %10 annual interest, will be worth $10,000 at the end of

A: Assuming compounding of interest take place yearly. We need to use this formula…

Q: Compute the future value o

A: Future Value is defined as the amount that is accumulated at some upcoming period of time. The…

Q: An investment of P100,000 is expected to yield a regular annual net income of P25000 for 10 years.…

A: A benefit-cost ratio (BCR) is a ratio used in a cost-benefit analysis to summarize the overall…

Q: The annual maintenance cost of a generator is P1000 after 1 year and it is estimated to increase by…

A: The cash flow in an arithmetic gradient cash flow changes (increases or lowers) by the same amount…

Q: uppose that $5000 is invested each quarter, for the next 20 years. what is the future worth if the…

A: An annuity is a sum of series of payments after every year or after every quarter. An annuity can be…

Q: Determine when, to the nearest year, $3,000 invested at 5% per year, compounded daily, will be worth…

A: Future value of a investment can be calculated by: Future value = Annual payment ×1+ifn×f Where, i =…

Q: What APR, compounded monthly, is needed to grow a present value of $250 to $500 over 6 years?

A: As per the information provided: Present value (PV) - $250 Future value (FV) - $500 Period - 6 years…

Q: what is the internal rate of return of $10,000 investment that yields an annual benefit of $2,400…

A: Using IRR function in excel

Q: If money can be invested at 7% compounded monthly, find the present value of 55,300 whic is due…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: To what amount will $4,900 invested for 9 years at 10 percent compounded annually accumulate?

A: We need to use compounding interest formula given below to calculate amount A=P(1+i)n where A=Amount…

Q: If the present value of $444 to be paid at the end of one year is $400, what is the one-year…

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

Q: Find the future value of 100 Rials compounded continuously at an annual rate of 6% for 12 years.…

A: The Future value when the interest rate is compounded continuously shows the future value of the…

Q: Find the present worth of a maintenance that has a cost of 40,000 in year 1 and annual increases of…

A: Year 1 cost (C) = 40000 Growth rate (g) = 7% n = 10 years r = 9%

Q: The annual maintenance cost of a generator is P1000 after 1 year and it is estimated to increase by…

A: Annual Maintenance Cost = 1000 End of period cost structure Increase in annual maintenance costs =…

Q: (a) find and (b) interpret the present value that will generate the given future value $3758 at 11…

A: The Present Value is the current value of a future amount i.e., it is the amount to be invested…

Q: What is the future value if the amount invested is 10,000 at 10% compounded quarterly for 5 years?…

A: Solution Given Present value 10000 Rate of interest 10% Compounding Quarterly…

Q: What APR, compounded annually, is needed to grow a present value of $250 to $500 over 6 years?

A: Annual percentage rate: It is the rate that shows total annual cost of the loan , Annual Cost…

Question

Find the value of the following, if the present value is 1,100 at 9% converted annually for 58 years.

Video Video

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

Step 1 concept

VIEW

Step 2 : solution

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?
If an asset declines in value from 5,000 to 3,500 over nine years, what is the mean annual growth rate in the assets value over these nine years?
Conestoga Plumbing plans to invest in a new pump that is anticipated to provide annual savings for 10 years of $50,000. The pump can be sold at the end of the period for $100,000. What is the present value of the investment in the pump at a 9% interest rate given that savings are realized at year end?
What is the present value of $2,000 received today, $2,500 received at the end of each of the next ten years and $1,000 received at the end of the 11th year , assuming a required rate of return of 6%?
Find the future value if $2700 is invested for 7 years at an annual rate of 9% compounded quarterly.
Compute the present value of $199500 that is invested for 6 years and 9 months at 2.45% compounded monthly?
What APR, compounded annually, is needed to grow a present value of $250 to $500 over 6 years?
Use the graph below to answer the following questions. What is the approximate final value of $10,000 invested for 40 years at 8% APR compounded annually? How many times larger is the final value of $10,000 invested for 50 years at 8% APR compounded annually versus 5% APR compounded annually?
What is the future value of the lump sum of $4,900 today that is invested for 8 years at 7 percent compounded monthly?
Using the formula for the time value of money, if a sum $15,000 is invested for one year at 10% interest compounded quarterly, the future value of that money is?
Determine the present value if $5,000 is received in the future (that is ,at the end of each indicated time period ) in each of the following situations: 5% of 10 years
What is the value of $100,000 invested for a period of 20 years at 7% return