If P60,000 is due at the end of 4 years at 5% compounded annually. What is the present value?

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: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…

A: To calculate the present value we will use the below formula   Present value = FV/[1+(r/m)]n*m Where…

Q: How much money should be invested at rate 2% compounded semi-annually to produce a future value of…

A: Present value of an investment is the initial amount that is invested in financial asset.  It is…

Q: A firm is scheduled to receive payment of $68,000 in 2 years.  What is the present value of this…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: What interest will be earned if $6000 is invested for 5 years at 11% compounded monthly? (Round your…

A: Using excel FV function

Q: What amount must be set aside now to generate payments of $30,000 at the beginning of each year for…

A: Annual payment (P) = $30,000 Interest rate (r) = 5.52% Period (n) = 10 Years

Q: An annual perpetuity of $10,000 has a present value of $250,000.  What is the annual interest rate?

A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…

Q: Find the present value of $10,000 if interest is paid at a rate of 9% per year, compounded anually…

A: The provided information are: Future value (FV) = $10,000 Rate of interest (r) = 9% = 0.09 Time…

Q: What is the present worth of $1000 for 6 years, if money is compounded 10% annually?

A: The question is based on the concept of calculation of present value of future cash flow. formula…

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: What is the future equivalent of 10,000 per year that flows continously for 8.5 years if the nominal…

A: The following information has been provided in the question: Present value= 10000 per year Time =8.5…

Q: In order to receive P12,000 at the end of three years and P10,000 at the end of five years, how much…

A: In the given given case it is assumed that compound interest mathod is used. Under compound interest…

Q: At what rate compounded annually will P50,000 earn P15,000 in 15 years?

A: Rate of return = (Future value / Present value)^(1/Time) - 1 where, Future value = P50,000 Present…

Q: A firm is scheduled to receive payment of $32,000 in 2 years.  What is the present value of this…

A: Present value of future cash flow can be calculated as follows: = Future Value/ (1 + rate)^number of…

Q: How much is the present sum is equivalent to a series of P1000 annual end-of year payments, if a…

A: Annual payment (P) = P 1000 Interest rate (r) = 6% Number of annual payments (n) = 10

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

A:

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: $15,000 is invested for 5 years at an annual simple interest rate of 17%. a) what will you earn in…

A: Interest = Principal * Rate * Time

Q: What is the percent value of $2,725 per year, at a discount rate of 10%, if the first payment is…

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

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: A sum of $150,000 now at an interest rate of 10% per year compounded semiannually is equivalent to…

A: The present value of money is the discounted value of future cash flows used to determine the…

Q: What is the present value of an ordinary annuity if its value at the end of 10 years is Php 50 000?…

A: Annuity Amount PHP 50,000 Rate of Interest (12% /4) 3% Period (10 Years * 4) 40

Q: If you invest a lump-sum amount of P25,000 at an interest rate of 12%, compounded annually, how much…

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

Q: What is the future value of $5,000 deposited for four years compounded atan annual rate of 10…

A: Annual Compounding       Interest rate  10.00%   Period (NPER)  4   Present Value 5000…

Q: What is the present value of an annuity of P150,000 payable at the end of each 6-month period for 2…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: What is the present value of $6,000 paid at the end of each of the next 65 years if the interest…

A: Annual payment (P) = $6000 Interest rate (r) = 7% Number of annual payments (n) = 65

Q: A P700,000 plot of land can be purchased for P200,000 down and P60,000 per year for 12 years. What…

A: A loan with a fixed annual stated rate is the net amount of borrowings that a borrower makes who is…

Q: If $650 000 is saved for retirement, what rate of interest, compounded monthly, will provide…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: What is the future worth of P8500 deposited every 3 months for 3 years if the interest is 10%…

A: Quarterly deposit (P) = P8500 Interest rate = 10% Quarterly interest rate (r) =…

Q: How long, to the nearest tenth of a year, will it take $50,000 to triple in value at 7.5% annual…

A: Formula to calculate time: A = P*e^rt Where A is final principal, P is the initial principal, r is…

Q: What sum must be deposited today at 18 percent per year compounded monthly if the goal 5 years from…

A: Time value of money is one widely used by the management to evaluate the project and to determine…

Q: What is the present value of a 6% investment that would pay P30,000 annually perpetually?

A: To calculate the present value we will use present value of perpetuity formula as follows:   Present…

Q: How much must be invested today at 10 %, compounded semiannually for 25 years, to produce…

A: At specific rate of return, present value (PV) would be the current price of a future amount of…

Q: You are scheduled to receive $100,000 in three years. r is 8% What is the present value ?

A: Present value is the present worth of any sum of a money to be received in the future at a specified…

Q: A loan of $8000 will be discharged by a cash payment of $3200 now; $1800 at the end of 4 years; $600…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: What is the present value of an ordinary annuity of $400 each month for eight years, assuming an…

A: Present Value Present value is the present worth of any sum of a money to be received in the future…

Q: What's the future value of $15,000 after 5 years if the appropriate interest rate is 14.75%,…

A: Present value (PV) = $ 15,000 Period (n) = 5 Years Interest rate (r) = 14.75%

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 will be the amount of the sum Rs 1200 for one and half year at 40 percent of interest…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Find the present value of $10,000 if interest is paid at a rate of 9% per year, compounded…

A: The provided information are: Present value (PV) = $10,000 Interest rate (r) = 9% =0.09 Number of…

Q: If P100 is placed in an account that requires a rate of return of 4%, compounded quarterly, what…

A: Future Value is the value of the current assets or some amount that is invested today and amount…

Q: Find the future value if $5000 is invested for 6 years at 10% compounded annually. (Round your…

A: INTEREST RATE 10.00% YEARS 6 PMT  0 PRESENT VALUE $5,000

Q: What is the present value of $10,000 to be received 10 years from now if the interest rateis 5…

A: Compound interest to interest charged on amount which is sum of principal and interest of previous…

Q: Determine the present value P if 100 pesos is paid annually for 5 years at 6% interest compounded…

A: Annuity amount= 100 pesos Time period= 5 years Interest rate= 6% interest compounded annually

Q: How much must be invested today at 10%, compounded semi-annually for 25 years, to produce P15,000?

A: Present Value refers to the value of cash flows today which is to be received at some future time…

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.