Q: If $1, 200 grows to $1, 781 in 7 years, determine the interest rate over that period.
A: In the given question we require to calculate the interest rate which grows $1200 into $1781 in 7…
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: If you are expecting to get OMR 34595 at the end of 3 years. Calculate its present value if the…
A: Nominal rate of return 9% Compounding Quarterly Effective rate of return ((1+9%/4)^4)-1)…
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: f you wish to save $875,000 in three years, how much would you need to deposit at the start of each…
A: Principal amount invested to save $ 875000 is $ $ 744,941 so to start depositing at the beginning of…
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: 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: Find an effective rate that is equivalent to a monthly compounded rate of 10%?
A: Note: I am supposed to provide the solution of first question only. Please repost the remaining…
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: What will be the present value, if $6,800 is discounted back 4 years at an interest rate of 4%…
A: Interest rate=4%Period=4yearsFuture value=$6800
Q: Assume the annual interest rate is 6%. Calculate the value of an investment that pays $100 every two…
A: Present value of perpetuity is = cash flow/rate
Q: At what nominal interest rate will money double in 8 years if interest is compounded quarterly? What…
A: Solution Given Rate of interest compounded quarterly =? Number of…
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: For the following amount at the given interest rate compounded continuously, find (a) the future…
A: Given, P = $5300 r = 3.4% = 3.4/100 = 0.034
Q: Suppose payments were made at the end of each quarter into an ordinary annuity earning interest at…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
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 present value of $5,000 paid at the end of each of the next 89 years if the interest…
A:
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: Suppose you are planning to 3 polnts save BDT 2,000 at the beginning of each of the next 10 years…
A:
Q: Suppose you are planning to save BDT 2,000 at the beginning of each of the next 10 years with 12%…
A: Annuity due is a term which describes a series of payments or savings that are equal at the…
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: Use the present value formula to find the present value of P30,000, if the interest rate is 16%…
A: Future value = P 30,000 Annual interest rate = 16% Number of compounding per year = 4 Number of…
Q: You found out that now you are going to receive payments of $9,000 for the next 11 years. You will…
A: Annual Payments = $9,000 Time period = 11 years Annual interest rate = 11%
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: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest…
A: When a certain amount is deposited at a certain interest with compounding, the accumulated amount is…
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: An investor lends $10,000 today, to be repaid in a lump sum at the end of10 years with interest at…
A: The real rate of return of an investment is the rate of return an investment generates after taking…
Q: What is the present value of $2,000 paid at the end of each of the next 88 years if the…
A: Annual payment (P) = $ 2000 Number of annual payments (n) = 88 Interest rate (r) = 8%
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: What interest will be earned if $6500 is invested for 7 years at 10% compounded monthly? (Round your…
A: Compound interest is a method of calculating the interest to be paid for using the money lent in 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: 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…
Q: Use the formula for computing future value using compound interest to determine the value of an…
A: The future value of the cash flow is the future worth of a cash flow at a certain rate of interest…
Step by step
Solved in 2 steps
- 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?
- You put $600 in the bank for 3 years at 15%. 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 third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.If you are expecting to get OMR 34595 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly.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 will be the future value of $1,000 at the end of ten years, if the annualized interest rate is 8% and the frequency of compounding is continuously?