If money is worth 8% compounded quarterly, find the present value of 12 quarterly payments of P1, 000 each. The first of which is due at the end of one year.

Q: If money is worth 5% compounded semi-annually, find the present value of a sequence of 12…

A: Present value of sequence is value today considering the interest rate and the period of annuity and…

Q: what is the future value of $13000 received today and deposited 7 years in an account that pay 12%…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: What is the present worth of the followingseries of payments?(a) $1,500 at the end of each year for…

A: A series of recurring fixed payments over a particular period of time is called as annuity. To…

Q: What is the present worth of a 3 years annuity paying P3,000 at the end of each year, with interest…

A: Annuity is a series of uniform cash flows over a period of time.

Q: a) What is the present worth ofequal payments of $25,000 made semi-annually (i.e., twice every year)…

A: Semi annual payment (P) = $25,000 Interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%

Q: What is the present value of a perpetuity of 15,000 pesos payable every end of 3 months if money is…

A: Quarterly payment (P) = P 15,000 Interest rate = 8% Quarterly interest rate (r) = [1+(0.08/12)]3-1…

Q: The future value of an anjuity at the end of ten years is 80000, the payments are made at the end of…

A: The future value of the annuity is the total value of all the payments which is occurred regularly…

Q: If $82,000 is invested in an annuity that earns 5.8%, compounded quarterly, what payments will it…

A: Present value (PV) of the investment is $82,000, which would earn an interest rate (r) of 5.8%…

Q: What is the future value of $9,000 deposited at the end of each year for 4 years earning 7% interest…

A: Given details are : Each year deposit = $9000 Time period = 4 years Interest rate = 7% Compounding…

Q: If money is worth 8% compounded quarterly, compute the present value of the perpetuity of ₱1,000…

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…

Q: Calculate the present value of 120 payments of $50.00 made at the end of each of 120 consecutive…

A: This is an annuity in which the annuity amount is $50, n = 120 and r = 12%/12 (as compounded…

Q: If $84,000 is invested in an annuity that earns 5.2%, compounded quarterly, what payments will it…

A: Investment (PV) = $84000 Interest rate = 5.2% Quarterly interest rate (r) = 5.2%/4 = 1.30% Period =…

Q: if the money is worth 6% compounded semi-annually, find the present value and the amount of annuity…

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

Q: If money is worth 5% compounded quarterly , find the future worth of a sequence of 12 semi annual…

A: N = 12 PMT = 1000 rate = (1 + 5%/4)2 - 1 = 2.5156% PV = 0 use FV function in Excel

Q: find the present worth of a perpetuity of p25000 payable quarterly if money is worth 5% compounded…

A: Perpetuity refers to series of equalized payments that are made either at start or end of definite…

Q: 1.If money is worth 5% compounded semi annually, find the present value of a sequence of 12 semi…

A: 1) Interest rate (r) = 5% per annum = 2.5% semiannually Each payment (P) = P 450 Total payments (n)…

Q: What is the equivalent present value of the following series of payments: $10,000 the first year,…

A: Calculate the equivalent present value as follows:

Q: What is the future value of $200 received today and deposited at 8 percent compounded semi annually…

A: Formulas: Future value = Amount *(1+rate)^years

Q: What is the present value of a $120,000 cash flow to be received at the beginning of each of the…

A: Amount  of Cash flow = $120000 at the beginning of the year Years(n) = 20 Annual rate(r) = 9%…

Q: Determine Mark's present worth of an annual payment of P2, 500 at the end of each year for 12 years…

A:

Q: What is the present value of annual payments of $2,000 for 12 years at 1 percent?

A: Present Value of Annuity is that amount which was invested by the investor today for receiving the…

Q: If $86,000 is invested in an annuity that earns 5.6%, compounded quarterly, what payments will it…

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 worth of a year annuity paying P 3,000.00 at the end of each year, with…

A: Annuity is referred as the instalment paid at the regular interval for a particular period. Present…

Q: What is the present value of a perpetuity of P150,000 payable quarterly if money is worth 4%…

A: Quarterly payment = Q = P 150000 Interest rate = 4% semiannually

Q: What is the interest earned on the principle of RM18,000 at the rate of 12% for 1 year and 4 months…

A: Principal amount (P) = RM 18,000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1% Period…

Q: If (P) dollars are invested at the end of each year in an annuity that bears interest at an annual…

A: The future value of a regular annuity amount can determine with the help of the future value of the…

Q: If money is worth 8% compounded quarterly, compute the present value of the perpetuity of Php1,000…

A: Given information: Annual payment of Php 1,000 payable quarterly Interest rate is 8%

Q: Calculate the compounded future value of 20 annual payments of $5,000 each into a savings account…

A: Information Provided: Term (number of payments) = 20 Payment amount = $5000 Interest rate = 6%

Q: What is the present value of a perpetuity of P150,000 payable quarterly if money is 4%…

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: What is the present worth of an annual payment of P5, 000 at the end of each year for 10 years at 10…

A: The present value of annuity will be calculated at the end of year 4 since annuity begins from Year…

Q: Determine the present value of 15 equal quarterly payments of P1,200 where the first payment starts…

A: Solution Concept To get the present value of the future values , we need to discount the future…

Q: Find the present value in pesos, of a perpetuity of P15,000 payable semi-annually if the money is…

A: Semi annual payment = P 15000 Interest rate = 8% Number of compounding per year (m) = 4 Semi annual…

Q: What is the future value of $7,200 deposited at the beginning of each year for 7 years earning 8%…

A: Calculation of Future Value:The future value is $69,383.72.Excel Spreadsheet:

Q: If money is worth 3.75% compounded quarterly, find the present value and the amount of an annuity…

A: Compounding is a way to find the PV of future amount or series of payments. This is also applies for…

Q: If money is worth 9% compounded quarterly, find the amount of an annuity of P2,000 payable every 3…

A: Quarterly payment (Q) = P 2000 r = 9% per annum = 2.25% per quarter n = 10 years = 40 payments We…

Q: If money is worth 6% compounded semi- annually, find the present value and the amount of an annuity…

A: The payment which is made at the end of 6 months is known as semi-annual payment. By multiplying…

Q: What is the present value of an annual payment of $9,500 discounted back 8 years at an annual rate…

A: given, A=$9500 r=3% n=8

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: What present value P amounts to $290,000 if it is invested at 6%, compounded semiannually, for 17…

A: In the given question the maturity value of investment (i.e., Future Value) is $ 290,000. This is…

Q: Find the present value of 20 bimonthly payments of P1,700 each if the first payment is done at 1…

A: Money has a time value. That is, the purchasing power of money changes over time. Annuity can be…

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: What is the present value of P300,000 due at the end of 2 years, if the money is worth 8% compounded…

A: Thhe formula to calculate present value is: Present value = Future value / (1 + Rate)^Time

Q: The annual amount of a series of payments to be made at the end of the next twelve years is P500.…

A: Answered:

Q: 1. Find the present value of a perpetuity of P15,000 payable semi- annually if money is worth 8%…

A: Answer- Perpetual Semi Annual Payments = 15,000 Interest Rate = 8% Compounded Quarterly Number of…

Q: What is the future worth of each of the given series of payments?(a) $12,000 at the end of each…

A: a) The question gives the following information:

Q: Find the present value of P1,200 due in 3 years and 9 months if money is worth 10%, compounded…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.