If you invest 5000 dollars today at a compound interest rate of 9 percent, what will be its future value after 30 years? (CVIF9,30 = 13.268) Select one: a. 66,340 dollars.  b. 65,000 dollars. c. 18,500 dollars. d. 60,000 dollars. e. 1,350,000 dollars

Q: You are paying $1,500 monthly for 10 years with an the interest rate of 12% compounded continuously,…

A: Future Value Annuity amount (PMT)= $1,500 monthly= $18,000 yearly Time period (n)= 10 years Interest…

Q: if you invest P10,000 with a rate of interest of 12% compounded annually, compute the interest of…

A: Here, Investment Amount is P10,000 Interest Rate is 12% Inflation Rate is 10% Time Period is 10…

Q: a. What single investment made today, earning 10 % annual interest, will be worth 10,000 TL at the…

A: Given information: Future worth is 10,000 Interest rate is 10% Number of years is 3

Q: the present value of perpetuity that pays 500,000 per year if the appropriate interest rate is 10%…

A: Present value of perpetuity = Annual amount / interest rate

Q: What is the present value of $14,000 to be received in one year if the interest rate is 8% p.a.? a.…

A: Using excel PV function

Q: How much would you be willing to pay today for an investment that would return P1,250 each year for…

A: The amount to be paid today is calculated as the present value of annuity

Q: 1)What is the future value in SEVEN years if you receive $300 in two years and $500 at the end of…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What single investment made today, earning 10 % annual interest, will be worth 10,000 TL at the end…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: What is the future value of $10,000 invest today in a savings account with an interest rate of 12%…

A: An amount deposited in the account earns interest for the duration of the investment. The amount…

Q: An investment is expected to yield $300 in three years, $500 in five years and $300 in seven years.…

A: In this we have to calculate the present value of all investment.

Q: Assume that you will invest $200 in one year, $400 in two years, and $600 in three years. If you…

A: Future Value: It is  the worth  of an asset at a future date based on an assumed pace of growth.

Q: If we were to invest $10,000 in an S&P 500 index fund, pay 0.2% annual fees,and add $100 a month…

A: Computation:

Q: What's the future value of $15,000 after  11 years if the appropriate interest rate is 10.75%,…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: You investe an amount of P50,000 with a promised interest of 9% compounded quarterly. How many years…

A: Since the quoted interest rate is compounded quarterly, the effective interest rate will be used to…

Q: You want to have $2.5 million in real dollars in an account when you retire in 40 years. The nominal…

A: Future value of an annuity refers to the value of the regularly paid annuities at a specified rate…

Q: What is the future value of a $12,500 investment, earning eight-percent interest per period, after…

A: Given details are : Present value of investment = $12500 Interest rate = 8% Time period = 3 years…

Q: If the $150,000 had been compounded continuously for 10 years at interest rate r, the balance would…

A: Continuously compounded interest: It is the interest calculated on both the original principal and…

Q: What is the current value of a security that pays $165,500 per year for 10 years if similar…

A: The current value of security can be calculated as present value of all cash flows

Q: ay you $99,000 in 15 years. If the appropriate discount rate is 6.7 percent compounded quarterly,…

A: The given problem can be solved using PV and EFFECT function in excel. PV function computes present…

Q: You plan to invest $40,000 at the end of each of the next 25 years.  If the investment account pays…

A: Amount Deposit each year = $40,000 Interest Rate (r) = 5% Years(n) = 25

Q: What would be more valuable, receiving $600 today or receiving $700 in three years if interest rates…

A: Amount received today is:::$600... Amount received in 3 yrs discount at 8% is::700$..... Present…

Q: If you invest $4,000 today at 10% interest, what is the value of the investment at the end of 5…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: If the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000…

A: The question is based on the concept of future value calculation of annuity payment, by use of…

Q: An annuity pays $1000 per year for 12 years. Inflation is 6 percent per year. The annuity costs…

A: Internal rate of return is one of the modern techniques of capital budgeting which considers the…

Q: if you invest $1,000 today With a compound annual interest rate of 5 %. What is the total amount…

A: Future value of money refers to the value of money on a particular date in the future. In other…

Q: What is the future value of $6000 invested for 4 years, if the interest rate is 12% p.a.,…

A: In this question we require to compute the future value of $6000 invested for 4 years at 12%…

Q: If you invest $12,000.00 today, how much will you have in the future under each of the following…

A: Future value of money is the amount which is forecasted by using the time, rate and the present…

Q: At what annual interest rate would the following have to be invested? i) $500 to grow to $1,948.00…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: What would you pay for an investment that pays you $4300000 after twenty years? Assume that the…

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: What is the present value (PV) of $300,000 received seven years from now, assuming the interest rate…

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

Q: You found an investment opportunity to deposit $15,000 every year for 10 years into an account…

A: The future value of an annuity is the recurring amount, which is being submitted at a particular…

Q: If you invest $12,000 today , how much will you have c) In 25 years at 10 percent? d) In 25 years…

A: Future value  is the worth of any asset or any sum of money at a future date when such asset or…

Q: In one year’s time, you plan to invest a certain sum of money that will grow to R100 000 ten years…

A: Future value = R 100,000 Period = 10 Years Annual interest rate = 11%       As per formula…

Q: How much would you have to invest today to receive a. $15,000 in 8 years at 10 percent? b. $20,000…

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

Q: What would you pay for an investment that pays you $5200000 after twenty years? Assume that the…

A: Given the following information: Annuity after twenty years: $5,200,000 Rate of interest: 6% Time…

Q: At an interest rate of 15% per year, an investment of $100,000 one year ago is equivalent to how…

A: Future Value = Present value*(1 + Interest rate)n Where n = time period

Q: If $43,000 is invested now, which of the following value is closest to the equivalent future dollars…

A: Time value It tells money received today has more worth than that of receiving the same value later…

Q: Suppose an investment will pay $11,000 in 41 years from now. If you can earn 14.55% interest…

A: Calculate the present value of investment.

Q: g What is the füfüre compounded at 10 percent? What would be the future value if it were an an-…

A: Answer g: Information Provided; Term = 7 years Rate = 10% Payment = $1000

Q: What is the amount that an investor wants to pay for a perpetuity that will provide $20,000 per year…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Suppose that you have the opportunity to receive $24,000 per year for the next 6 years. Over this…

A: Present value amount refers to the values of money in current period for all future expected cash…

Q: What is the present value annuity due of RM2,000 with a 10 percent discount rate for 10 years?…

A: using the PV function in excel

Q: What is the future value (FV) of $50,000 in six years, assuming the interest rate is 4% per year? A.…

A: The value of amount available at current date on the specific date in future when invested at…

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.