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: Consider an investment which pays $2,000 at the end of year 1, year 2, and year 3. In year 4, the…
A: Terminal value at end of year 3 = Cash flow in year 4 / (Interest rate - growth rate) = $5000 / (7%…
Q: An investor is considering an investment that will pay $2,290 at the end of each year for the next…
A: The payment required to be made can be calculated with the help of PV function.
Q: An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $400…
A: Present value is the current worth of the future payments to be made at a specified interest rate.…
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A: 1. A loan is the money is given to another party in exchange for repayment of the loan principal…
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A: The discount rate is 8.20% compounding quarterly. The cash flows have a periodicity of 1 year.…
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A: The amount or proceeds is “P”, it gets doubled to “2P” in T times at a rate of 3.34% Using the…
Q: An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you…
A: Here,
Q: Suppose that you need to take out a loan today and anticipate being able to pay back $50,000 sixteen…
A: Let the loan amount = X Amount to payback (A) = $50000 n = 16 years
Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300…
A: The present value is the present market price of a certain amount which is carrying the expected…
Q: Suppose that you deposit $200 at the end of each month into an account paying an expected annual…
A: given, monthly compounding N =10 x 12 = 120I =3%12PV =0PMT =200 FV = need to find
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A:
Q: A fixed-income security pays out a dividend of $5 at the end of each year for 9 years, and a lump…
A: Annual dividend (D) = $5 Number of annual dividends (n) = 9 Lump sum amount (MV) = $105 Lump sum…
Q: If you invest your P3,000 every year at 4% interest rate, how many months does it take to be worth…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: Suppose you invest $2,000 today and receive $11,000 in five years. a. What is the internal rate of…
A: IRRIt is a capital budgeting technique of a discounted cash flow that gives a rate of return is…
Q: Suppose an investment will pay $11,000 in 26 years from now. If you can earn 13.30% interest…
A: MONTHLY COMPOUNDING RATE (13.30%/12) 1.108333333% YEARS (26*12) 312 PMT 0 FUTURE VALUE…
Q: An investment will pay $50 at the end of each of the next 3 years, $200 at the end of Year 4, $350…
A: Present value is the current value of the future payments at a given rate of interest. Future value…
Q: Suppose you invest $1,400 for seven years at an annual percentage rate of 8 percent. a. What is the…
A: Future Value = Present value * (1+r)^n Where r = rate per period n = no. of compounding period…
Q: what is its present value? Its future value?
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: Suppose you wish to retire in 43 years on a fixed income equiva- lent to $66,000.00 in today's…
A: One of the important techniques that are used by the management in various areas such as a…
Q: Suppose you wish to retire in 41 years on a fixed income equiva- lent to $66,000.00 in today's…
A: Yield = 5.3% N = 41 Inflation rate = 2% Future Value Required = Present Equivalent * (1+Inflation…
Q: How much would an investor be willing to pay for an investment that guaranteed payments of $4,000 at…
A: Using excel PV function Where PMT is a periodic payment NPER is no. of periods RATE is rate per…
Q: An investment will pay $50 at the end of each of the next 3 years, $200 at the end of Year 4, $350…
A: In first 3 years, the cash flow is same. So, annuity formula can be used to calculate present…
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: Suppose a person has a retirement investment portfolio that consistently earns 5.1% annually. In…
A: Perpetuity is an annuity that continues for an indefinite period. In perpetuity series of cash flows…
Q: An investment will pay $150 at the end of each of the next 3 years, $250 at the end of Year 4, $400…
A: Year Payment 1 150 2 150 3 150 4 250 5 400 6 600 Interest rate = 8%
Q: If you invest $2,000 in an account with an annual yield of 12.0% compounded each month. What is the…
A: The question is based on the concept of calculation of future value . Formula as, FV=PV*(1+rn)t*n
Q: a. What do you get at the end, if you save $100 for 8 years with 15% interest rate?
A: a) Annual saving (A) = $100 r = 15% n = 8 years
Q: If a person saves $62 a month by using coupons and doing comparison shopping, (a) what is the amount…
A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…
Q: If the interest rate is 15%, what is the present value ofa security that pays you $1,100 next year,…
A: Formula for calculating Present Value is as follows PV =Cn1+ rn Where, Cn = Cash flow for period n r…
Q: You have an investment account that started with $4,000 10 years ago and which now has grown to…
A: (a) Holding period return = (Investment at end - Investment at beginning) / Investment at beginning…
Q: Suppose that a 10-year T-note is purchased with a face value of $20,000 and a coupon rate of 3.4%…
A: Return means an additional amount earned over the invested amount. It is computed on the basis of…
Q: Suppose that you can make an annual profit of $600 on an investment of $4000. Suppose you borrow the…
A: In this we have to calculate the rate of return earned and from that we can real rate of return.
Q: 1. If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years?
A: Principal amount invested now will become certain amount after certain period of time at specific…
Q: In this problem: How much is the present value of monthly deposits of 500 in 8 years if the interest…
A: The present value of the amount represents the current value of the future cash flows. The…
Q: . An investor buys a 150 TL investment fund from the bank and sells it for 165 TL after 25 days.…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: What is the future value of a constant income stream of $20,000 per year in 6 years from now given a…
A: Given information: Constant income stream of $20,000 Number of years is 6 Interest rate is 3.5%
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: (a)Suppose you expect to receive GH¢ 2,000 per year for the next 22 years except that you will not…
A: The current value of the cash flow or stream of cash flow after discounting is termed as the PV…
Q: An investment you have will mature in 6 months and will give you $13,000 at that time if your…
A: initial deposit = 12000 maturity period = 6 months maturity amount = 13000 finding 1)nominal annual…
Q: Compute how much shall the investor collect at the end of 13 years
A: Future value: It is the future worth of the present amount or cashflows, compounded over a period…
Q: A music composer deposits $5,000 into an investment that earns an annual interest rate of 5.8%. If…
A: Nominal interest rate = 5.8% Inflation rate = 1.7%
Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $300…
A: Formulas:
Q: Consider an investment which pays $3,000 at the end of year 1, year 2, and year 3. In year 4, the…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the…
A: Given, The present value of investment is $10,000 The rate of interest is 7% per year compounded…
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A: In finance, the term future value shows a dollar sum expected to be received at some point in the…
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A: Calculation of p0 The value of P0 can be calculated by using the following formula P0=…
Q: What is the present value of an investment that will pay $1,000 in one year's time, and $1,000 every…
A: Calculation of Present value of perpetuity:Answer:The present value of the investment is $12,500
An investor has a principal amount of $P. If he desires a payout (return) of 0.1P each year, how many years will it take to deplete an account that earns 8% per year? 0.1P = P(A/P, 8%,N), so N ∼=21 years. A payout duration table can be constructed for select payout percentages and
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- A principal of $12, 000 is 3/5th itself invested at \times % interest rate for 5 years. If the same principal was invested for 2 years at an annual compound interest rate of (x+4) %. The interest return amount in dollars equalsO a. $ 4, 147.20 b. $4, 292.30 c. $4,219.80 d. $4,890.4Principal: $16,100Interest rate: 28%Compounded quarterlyCalculate the effective rate (APY) of interest for 1 year.Principal:$3,000 Rate: 8%Time: 3 years Number of times compounded per year : quarterly Future value-
- What principal earning 16% compounded quarterly will grow to dollar 8,500 after six years and three months? A) dollar 448.66 B) dollar 22,659.61 C) dollar 3,188.49 D) dollar 3,361.68 E) dollar 3,147.71A debt of $36,000 is repaid over 10 years with payments occurring quarterly. Interest is 8% compounded semi-annually. (a) What is the size of the periodic payment? (b) What is the outstanding principal after payment 27? (c) What is the interest paid on payment 28? (d) How much principal is repaid in payment 28?A debt of $40,000 is repaid over 12 years with payments occurring annually. Interest is 4% compounded quarterly. (a) What is the size of the periodic payment? (b) What is the outstanding principal after payment 6? (c) What is the interest paid on payment 7? (d) How much principal is repaid in payment 7?
- Assume the following annual payments of notes payable of Demi Company with 10% discount rate. 1st Year - P300,0002nd Year - P200,000 3rd Year - P400,000 What is the present value of the annual payments?Assume the average management cost per account per year is $200 and the average fees earned per account per year is $170. The average annual size of account is $1800. What is the average implicit interest rate (round to two decimals)? Select one: a. 4.86% b. 1.67% c. 15% d. -1.67%Find the effective interest rate (effective annual yield) of an investment that pays 10% per year (quoted or nominal rate) with the interest reinvested quarterly. a. .116 b. .199 c. .104 8 d. 188 The effective interest rate (effective annual vield) is the actual percentage interest paid by the bank
- A certain investment earns P2,000 in 18 months at a rate of 8% simple interest. How much is the principal investment? P1,758.71 P1,875.71 P1,785.71 P1,785.173. A loan of $20,000 has a stated interest rate of 5 percent per year. Repayment of principal and all accumulated interest is to be made at the end of year 10. a) How much is paid at the end of the tenth year? b) How much simple interest is paid (excluding the interest accumulated on interest)? c) How much compound interest is paid (i.e., interest on interest)? please show formulas. ThanksThe principal P is invested at the interest rate of r/year for t years. (Use a 365-day year.) P = $110,000, r = 4%, t = 7 1 4 , compounded monthly.Determine i, the compound interest rate.