If the initial investment is $200,000, what would be the nominal annual rate of interest compounded quarterly to achieve a payment of $2,000 at the end of each quarter?

Q: How long will it take for $4,000 to grow to $7,000 if the investment earns an interest rate of 16%…

A: Given information: Future value is $7,000 Present value is $4,000 Interest rate is 16% compounded…

Q: An investment will return $125 at the end of each month for 5 years and then $250 at the end of each…

A: Value at the end of 5 years of $250 received for next 3 years every month, can be calculated as…

Q: money is worth 7.3%, compounded quarterly?

A: Present Value of future cash flow means the cash flows discounted at a given rate of return. FV*…

Q: Find the present value that will grow to $23,000 if interest is 8% compounded quarterly for 19…

A: Present value is the value if future cashflow discunted to present date at specified rate. formula:…

Q: What is the present value of a stream of $800 cash payments, each to be made at the beginning of the…

A: Simple Annuity due refers to the payment system where amount paid or received in eac period is not…

Q: With a present value of $150,000, what is the size of the withdrawals that can be made at the end of…

A: We use PMT function in excel to calculate quarterly withdrawal

Q: What per annum nominal interest rate with interest compounded quarterly would be needed to achieve…

A: Compounding refers to the power of doubling the investment by adding interest .Compounding helps in…

Q: year-end bonus of $25,000 will generate how much money at the beginning of each month for the next…

A: Year End Bonus=$25000 interest rate =6.06 monthly interest =6.06/12=0.505 monthly interest =0.505%0…

Q: You are considering an investment costing $300,000. If you want to recover the initial investment,…

A: Formula:

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: Find the future value if $2700 is invested for 7 years at an annual rate of 9% compounded quarterly.

A: If the money deposited in the account is left untouched it will end up growing into a larger balance…

Q: Given an interest rate of 6.0 percent per year, what is the current value of a perpetual stream of…

A: Value of the perpetuity in 4 years will be = Annual amount / interest rate = $ 36,000 / 0.06 = $…

Q: What is the present value (PV) of an investment that pays $90,000 every year for four years if the…

A: The present value of an annuity is the sum of the discounted value of the periodic cash flows.…

Q: How much will have to be invested at the beginning of each year at 7%, compounded annually, to pay…

A: Future value = Present value (1 + Rate of interest)number of years

Q: How long would it take an amount of  $4,000 invested at an interest rate of 21 % per year,…

A: Given information: Present value is $4,000 Future value is $16,000 Interest rate is 21%

Q: Suppose that $4000 is invested each quarter, for the next 10 years. What is the future worth if the…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: What is the present value of 24 monthly cashflows of $420 each starting today if the interest rate…

A: Using excel PV function, This is question of annuity due since cashflow starting today

Q: An investment of $40,000 yields a net annual income of $8,000 for 11 years. What is the annual…

A: Information Provided: Present value of investment = $40,000 Annual Income = $8000 Term = 11 years

Q: What per annum nominal interest rate with interest compounded quarterly would be needed to achieve…

A: The present value function or concept can be used to determine the present value of a future sum or…

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: If $19,000 is invested at 5% compounded quarterly, what is the amount after 9 years? The amount…

A: Given: Present value = $19,000 Interest rate = 5% Years = 9

Q: Equipment that costs $15,000 and generates a $5,000 annual return would appear to "pay back" on the…

A: Given: Investment =$15000Annual return =$5000Inflation rate =30%

Q: A 10-year investment will pay $2,500 at the end of this year, and the payments will grow at a rate…

A: Answer: Given data, Future value = $2,500 Required rate of return = 15% Paymets grow @ 5% per year

Q: With a present value of $125,000, what is the size of the withdrawals that can be made at the end of…

A: Working note:

Q: If an Investment of $5000 will grow to $8000 in four years with quarterly compounding the effective…

A: We will find the interest rate by applying the requisite formula where we can use the amount 8000…

Q: What will be the future worth of series of 15 annual $100 payments if the nominal annual interest…

A: An interest rate method in which current interest is computed by multiplying the interest rate by…

Q: At an interest rate of 10% per year, determine the perpetual equivalent annual cost of: $70,000 now,…

A: The cash flows that are started immediately after the investment and go on for an infinite time…

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: 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 present value of an investment in which the interest rate is 3.9% per year, compounded…

A: The time value of money is the idea that the value of money received today will be more worthy than…

Q: With a present value of $130,000, what is the size of the withdrawals that can be made at the end of…

A: Present value of an amount is $130,000. Using present value annuity formula, quarterly withdrawals…

Q: it is desired to save $20,000 by depositing $800 every 3 months in an investment that pays 8%…

A: Annuity means a set of finite number of payments which are the same in size and made in equal…

Q: With a present value of $125,000, what is the size of the withdrawals that can be made at the end of…

A: Present value (PV) = $125,000 Period = 10 Years Quarterly periods (n) = 10*4 = 40 Interest rate =…

Q: Calculate the future value of an investment of $3,500, after one year, if it is deposited in a…

A: Where, A=future valueP=present valuer=rate of interestn=time period.

Q: An investment offers to pay you $300 per quarter for 10 years. If the annual rate is 11% with…

A: Calculate the present value as follows:

Q: With a present value of $145,000, what is the size of the withdrawals that can be made at the end of…

A: Time value of money identifies the depreciation in value of money over the period of time by…

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 rate of return on an investment of $150,000 if the company expects to earn $12,000…

A: The rate of return earned on the investment can be calculated with the help of RATE function of…

Q: You have invested 7 million dollars for a horizon of 24 months. You will be paid interest at 7.80%…

A: Initial investment (I) = 7 million Semiannual interest rate (r) = 0.039 (i.e. 0.078 / 2) Semiannual…

Q: A year-end bonus of $23,000 will generate how much money at the beginning of each month for the next…

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

Q: If $80,000 is invested in an annuity that earns 5.3%, compounded quarterly, what payments will it…

A: The total number of years is 8.5. The total number of quarters will be (8.5 × 4) = 34. Interest rate…

Q: An investment is expected to pay a return of $5,250 semi-annually (i.e. at the end of each six…

A: Effective interest rate is the return an investor will earn during the span of their investment…

Q: How much is the present value of your investment if you invest P2,000 semi-annually at start of…

A: The present value of annuity due is the present value of a series of cash payments that are expected…