How much has to be put away today to provide some dollar amount in the future?
Q: How much would1,000,000 due in 100 years with worth today if the discount rate is 20%?
A: Present Value is the current value of the future sum of money at the specific rate of return.
Q: 10. Money that you have right now will be worth more over time, refers to A. Future value B. Present…
A: Time Value Of Money: Time value of money means that the value money changes over the change in time.…
Q: Suppose that starting a year from now you will receive $720 a year at the end of every year. If the…
A: In this question we need to calculate the Present value of perpetuity i.e. stream of cash flows…
Q: What is the future value of the annuity stream, if the frequency of compounding is 2 times per year?
A: Future Value of Annuity: It refers to the future worth of the periodic payments made at the end of…
Q: If the payments are monthly how would you set up the present value?
A: The concept of present value asserts that a sum of money today is worth more than the same sum in…
Q: If you put 45,000 today in exchange for a 6.4 percent, 15-year annuity, what will the annual cash…
A: Present Value = 45,000 Rate = 6.4% Time period = 15 ye
Q: Suppose that starting one year from now you will receive $560 a year at the end of every year. If…
A: Present value of perpetuity = perpetuity amount / discount rate
Q: What's the future value of an 8%, 5-year ordinary annuity that pays $100 each year? If this was an…
A: Annual payment=100Interest rate=8%Number of years =5
Q: How much would $30,000 due in 20 years be worth today if the discount rate is 11.0%?
A: present value=future value1+rn where, r=rate of interest n=number of years
Q: Calculate the present value of this annuity.
A: Present value (PV) of growing annuity refers to an annuity which shows the current value of all the…
Q: How much should be put in an investment with a 10% effective annual rate today to have P10,000 in…
A: The future value of a cash flow is the future worth of a cash flow at a certain arte of interest for…
Q: The amount that must be invested each year is $
A: Present Value of Annuity: It represents the present worth of the future stream of cash flows. It…
Q: How much will you need to invest today at 10% to have $10,000 six years from today?
A: Using excel PV function Where, PV = present value NPER = no. of years FV = future value
Q: 1. Reflect, analyze and explain the phrase: "a dollar today is worth more than a dollar tomorrow."
A: TVM concept says that the money we have today will give more value rather than in the future because…
Q: If you want an investment to double in three years, what annual interest rate must it earn?
A: Given: An investment doubles in 3 years So, let initial investment be 100 Future value = 200 (twice…
Q: Now, drawing on your understanding of the concept of present value, calculate how much you would…
A: Present value is the discounted value of future cashflow
Q: How much would $50,000 due in 25 years be worth today if the expected rate were 5.5%?
A: Given details: P = $50,000 n = 25 years r = 5.5% or 0.055 Present value = P1+rn
Q: Which of the following will generate the greatest future sum of money, assuming other variables stay…
A: Assumed values: Assume: Amount Present value(PV) $2,500 Years(NPER) 5
Q: What's the difference between an ordinary annuity and an annuity due? Why would you prefer to…
A: Note: Interest arate is not provided,hence "i" is taken as 5% for calculation. Same formula can be…
Q: What is the present value of receiving $1,950 a year for 30 years if you expect a rate of return of…
A: Present value of annuity = P * {1-[1/(1+r)^n]/r} Where, r = rate of interest 6% n = no. of years 30…
Q: What annual cash savings would be needed in order to satisfy the company's 12% required rate of…
A: Initial cost (PV) = P 50,000 Life of project (n) = 5 Years Salvage value (SV) = P 10,000 Annual…
Q: Find the future value of each annuity due. Then determine how much of this value is from…
A: When an equal amount of payment is made in an equal time interval for a fixed number of times, it is…
Q: An annuity is a method for calculating the future value of a single payment or a series of payments.…
A: The annuity formula is used to find the present or future value of a series of payment. The present…
Q: Why does an annuity due always have a higher future value than an ordinaryannuity?
A: Annuity is a stream of Equal Cashflows that occur during equal intervals of time for a definite time…
Q: What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an…
A: Calculation of future value of annuity:
Q: What's the future value of a 5%, 5 year ordinary annuity that pays $800 each year? If this was an…
A: The future value of the annuity is the total value of all the payments which is occurred regularly…
Q: How much will $200,000 deposited in an investment account earning an annual interest rate of 8½% be…
A: Given information: Present value $200,000 Annual interest rate is 8.5% Number of years is 1
Q: ppose California’s population is 36.5 million people and its population is expected to grow by 2%…
A: The given problem can be solved using NPER function in excel. NPER function computes no. of periods…
Q: Suppose you had a relative deposit $10 at 5.5% interest 200 years ago. How much would the investment…
A: Future value is referred to as the value of the current asset on the basis of an assumed growth rate…
Q: Explain why this statement is true: A dollar in hand today is worth more than a dollarto be received…
A: Money makes money. And the money that money makes makes more money. — Benjamin Franklin Money has…
Q: What is the future value of a three-year, ordinary $ 1,000 annuity when money is worth
A:
Q: What is the future value of a 5%, 5-year ordinary annuity that pays P8,000 each year? If this was an…
A:
Q: If you put up $37,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual…
A: Time value of money states that the worth of money in present is always more than that of future…
Q: What is the present value if the money become Php158, 900 after 5 years of investment using 11.2%…
A: The present value is the present worth of the amount that will be paid or received in the future.
Q: (a) How many payments will be paid? (b) What is the size of the final annuity payment?
A: Given in the question: Annuity Cash Value $12,000 Payment at the beginning of every six…
Q: How long will it take a sum of money to triple its value when invested at 10% compounded…
A: Answer: Calculation of the time it will take a sum of money to triple: Formula, Future value =…
Q: What is the future value of ordinary annunity of RM1000 per year for 7 year compounded at 10% ? What…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: How much would have to be deposited today in an investment found paying j12 = 10.4% %3D to have $200…
A: Amount after 3 years = Deposit * [ 1 + Monthly rate ]Number of months
Q: What is the ERR for this project? Assume that = 12% and MARR = 20% per year. Is this project…
A: ERR is external rate of return, the rate earned with present worth of cost and future worth of…
Q: Time Value of Money What is the rate of return on a security that costs $1,000 and returns $2,000…
A: Since you have asked multiple questions, we will solve the first question for you. Please ask…
Q: What amount will be the present value of the following cash flows, given that the discount rate is…
A: Present value: It can be defined as today’s worth of an investment that will be received in the…
Q: (d) What is the annual investment (and its timing) in nominal terms each year for the net working…
A: Working Notes (WN ) :: WN #1 WACC in nominal terms: Nominal WACC = ((1+WACC real terms)…
Q: In what year will the investment be expected to double?
A: The ‘rule of 72’ is an important numerical concept in finance. The concept is based on the principle…
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- How much is this savings account worth today if payments were to made forever under this pattern.How should the $70,000 be allocated to each alternative to maximize annual return? What is the annual return?What amount will be the present value of the following cash flows, given that the discount rate is 10% annually?
- What is the present value of the following cash flows, if the discount rate is 10% annually? (If you can type solutions or calculations in EXCEL, it would be great! Thanks!)Explain why this statement is true: A dollar in hand today is worth more than a dollarto be received next year.Which of the following will generate the greatest future sum of money, assuming other variables stay constant? Select one: a. 5% yearly compound interest b. 10% yearly simple interest c. 10% yearly compound interest d. 5% yearly simple interest
- How much do you need to save each year for 30 years in order to have $775,000, assuming you are investing the money in an account that earns 8%? How much of the $775,000 comes from contributions (your out of pocket costs)?What is the value of an investment opportunity that will pay GH¢5,060 next year, GH¢5,500 the year after and GH¢7,800 in the third year, assuming similar investment has a return of 14.5%?how much would $5,000 due in 10 years be worth today if the discount rate were 4.5? solve using financial calculator
- The present value of an annuity is the amount needed now so that desired annuity payments may be made in the future. In this scenario annuity payments will be made at the beginning of each month. Thus, this is an annuity due. To find the present value of this annuity, the amount of money that should be deposited in an account now, the interest rate per period must first be found. The interest rate per period is calculated using the nominal, or annual, rate and the number of periods per year as follows. interest rate per period = nominal rate periods per year The rate was given to be 6%. Interest is compounded monthly, or 12 times per year. Find the interest rate per period. interest rate per period = nominal rate periods per year = % 12 = % The total number of compounding periods will be 1 less than the number of years annuity payments will be made multiplied by the number of compounding periods per year. There are 12…If the payments are monthly how would you set up the present value?What is the future value of a 6%, 10-year ordinary annuity that pays $200 each year? If this were an annuity due, what would its future value be?