Q: then the present value factor of the lumpsum is:
A: Time value of money (TVM) is used to measure the value of money at different point of time in the…
Q: What is the present value of $1,000 paid at the end of each of the next 56 years if the interest…
A: Present value is the current worth of the amount deposited or received in future date.
Q: Find the rate of interest if the principal value is $28000 with an interest value is $9000 after 5…
A: Principal value (P) = $28000 Interest value (I) = $9000 Period (n) = 5 Years
Q: What is the present value of $9,300 received 10 years from now using a 7% interest or discount rate,…
A: Given details are : Future value = $9300 Time period = 10 years Interest rate = 7% Compounding…
Q: What is the present worth of annually payments ( 2000 $ ) if the first payment will deposit after…
A: All deposits will happen at the start of each year. So, the first payment will be at start of 6th…
Q: If you are expecting to get OMR 60633 at the end of 3 years. Calculate its present value if the…
A: Given information: Future value : OMR 60633 Time period : 3 years Interest : 9%
Q: what would be the present value of $10,000 in the future?
A: Time value of money (TVM) means that the amount of money received in the present period will have…
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: present
A: Formula to calculate Present value: PV = FV/(1+r)^n Where PV is the present value, FV is the fututre…
Q: how much would be available at the end of the time period. How much is the interest earned?
A: Time value of money (TVM) means that the money received in the present period will have more value…
Q: Assume that you can invest to earn a stated annual rate of return of 12%, but where interest is…
A: The Future Value of annuity is the total value of all the payments which occurred regularly at a…
Q: If the final value is $4400 at the end of 6 years and the simple rate of interest is 8%, what is the…
A: Formulas: Future value = Amount + Interest
Q: Suppose you were to receive $1,000 at the end of 10 years. If your opportunity rate is 10 percent,…
A: given, FV = $1000 N=10 R=10%
Q: What's the future value of $1,300 after 5 years if the appropriate interest rate is 6%, compounded…
A: Future value can be referred to as the value of an underlying asset or security at a future date.…
Q: Tommy John is going to receive $1,000,000 in three years. The current market rate of interest is…
A:
Q: f the stated interest rate is 10%, number of years is 8 , and market interest rate is 12% compounded…
A: Formula: Present value Annuity factor = [ 1 - 1 / ( 1 + i )N ] / i
Q: What is the future value of $12,000 after 5 years if the appropriate interest rate is 6%, compounded…
A: Amount = $12,000 Years = 5 Terms = 2*5 = 10 semi-annual terms Interest rate(r) = 6%/2 = 3%…
Q: What is the future worth of $1,000 in month 1, $1,040 in month 2, and amounts increasing by $40 per…
A: Time value of money states that the value of money grows over time, the growth in the value of money…
Q: Suppose that you will receive annual payments of $16,500 for a period of 10 years. The first payment…
A: Present value is the current worth of the future payments to be made at a specific interest rate.…
Q: If you are expecting to get OMR 7100 at the end of 17 years. Calculate its present value if the…
A: Given information: Future value : OMR 7100 Time period : 17 years Discount rate :2.5% Compounding :…
Q: What's the future value of an initial $100 after 3 years if it is invested in an account paying 10%…
A: Given: Initial deposit = $100 Time =3 years Interest rate = 10% Future value = Initial deposit* (1…
Q: What is the present value of $100 to be received in 3 years if the annual interest rate is 10% and…
A: Given: Future value =$100 Time = 3 years Interest =10% So, present value =Future value/(1+…
Q: assume that you pay 10000 on a yearly basis for 10 years, how much will pay after ten years if the…
A: Given:Amount paid on yearly basis=10000Time period=10yearsInterest rate=5% compounded yearly
Q: If you are expecting to get OMR 41661 at the end of 3 years. Calculate its present value if the…
A: Given: Future value =OMR 41661Interest rate =9%4=0.0225No. of periods =3 ×4 =12
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: If you invest $154 at an interest rate of 6% (annual rate) compounded annually, how much interest…
A: Interest earned is the interest which is applied on the principal. It is the interest for using…
Q: What annual interest rate (APR) would cause $1,500 to grow to $2000 in 4 years when compounding is…
A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…
Q: If you invest 1000.00 per year for 3 years starting 1 year from now and 1500.00 per year for 5years…
A: It can be calculated using FV (Future Value) formula in excel FV (rate, nper, pmt, [Pv], [type])…
Q: What are the future value and the interest earned if $2800 is invested for 3 years at 8% compounded…
A: INTEREST RATE (8%/4) 2.00% PERIOD (3*4) 12 PMT 0 PRESENT VALUE $2,800
Q: If you deposited $10,000 each year for 10 years and the interest rate is 5.00%, what is the value at…
A: INFORMATION: RATE 5% YEARS 10 PMT (MONTHLY DEPOSIT) 10000 PRESENT VALUE $0
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: Determine the present value of a 3 year CSB with an interest rate of 3.9%, compounding…
A: present value=future value1+rmm×n r=rate of interest m=frequency of compounding n=number of years
Q: With a present value of $110,000, what is the size of the withdrawals that can be made at the end of…
A: We need to use present value of ordinary annuity(payment due at end) formula to calculate the size…
Q: You expect to receive $50,000 from your superannuation in 3 years from today. If the interest rate…
A: Please refer to the image below
Q: Suppose payments were made at the end of each month into an ordinary annuity earning interest at the…
A: Annuity means number of payments made at equal interval of time and equal in size. Ordinary annuity…
Q: An investment pays you $1000 at the end of each of the next 3 years. The investment will then pay…
A: Interest rate = 8% Calculation of present value Year Cash inflow PVF(8%,Year) Present value A…
Q: Suppose we invest £100,000 at a semi-annually compounded interest rate of 6% for 1 year. What are…
A: Net ROI (return on investment) is calculated by subtracting the initial amount of investment from…
Q: What is the future value of the 10% savings from earnings of $187.45 if it earns 5% annual interest,…
A: Monthly savings, A = 10% of earnings of $ 187.45 = $ 18.745Interest rate per period = Interest rate…
Q: How much money will you have, 9 years from today, if you receive $600 at the end of each quarter for…
A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: If you are expecting to get OMR 10240 at the end of 3 years. Calculate its present value if the…
A: Given information: Future value : OMR 10250 Time period : 2 years Interest : 9.42%
Q: Find the future value of an ordinary annuity of $80 paid at the end of each quarter for 5 years, if…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: What is the PV of a perpetuity paying $6 each month, beginning next month, if the monthly interest…
A: Present value of a Perpetuity is equal to the PMT / Annuity value divided by the rate of interest…
Q: What is the current value of a $50 payment to be made at the end of each of the next three years if…
A: Present Value: It is the present worth of the payments discounted over the period at a rate of…
Q: If the interest rate is 3 percent then what is the present value of $8,198 to be received in 6 years…
A: Answer: Calculation of the present value of $8,198 to be received in 6 years: Present value = Future…
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- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
- Use the present value formula to find the present value of P30,000, if the interest rate is 16% compounded quarterly, for 6 years.If the current rate of interest is 6% APR, what is the future value of an investment that pays AED 15,000 every two years and lasts 20 years.You expect to receive $50,000 from your superannuation in 3 years from today. If the interest rate is 8% p.a., calculate the present value if interest rates are compounded quarterly.
- 1. If you invest $ 2,000 now and it will become $ 6,000 at the end of 4 years, determine the nominal rate of interest and the corresponding effective rate of interest if the interest is compounded quarterly.If the final value is $4400 at the end of 6 years and the simple rate of interest is 8%, what is the present value?What is the present value of $100 to be received in 3 years if the annual interest rate is 10% and compounded annually? How about if the interest is compounded monthly, daily or hourly?
- What is the value today of receiving $4, 500 at the end of each year for the next 6 years, assuming an interest rate of 9% compounded annually?You are set to receive an annual payment of $10,900 per year for the next 15 years. Assume the interest rate is 5.8 percent. How much more are the payments worth if they are received at the beginning of the year rather than the end of the year?If you wish to save $875,000 in three years, how much would you need to deposit at the start of each quarter to achieve this goal assuming an interest rate of 5.4% compounded quarterly?