NEED HELP ASAP! An employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the end of the eleventh year from now. Using an interest rate of 7% compounded annually, what is the value of these grant now?

Q: Choi Home Repair needs to accumulate $22,000 in 6 years to purchase new equipment. What sinking fund…

A: In the given question we require to calculate the sinking fund payment choi home repair need to make…

Q: Felix Jones, a recent engineering graduate, expects a starting salary of $35,000 per year. His…

A: Solution : Due to averaged Increment in salary was 5% for last several years & interest rate was…

Q: A loan of $50,000 is due 10 years from today. The borrower wants to make monthly payments at the end…

A: The payments made constantly without any uneven time gap are called annuity where nominal amount for…

Q: You plan to retire in 40 years. To provide for your retirement, you initiate a savings program of…

A: Future value is the expected value of current sum in a future date at a given rate of return. Given:…

Q: today

A: Formula to calculate FV of annuity: If payment done at the beginning of the year: FV =…

Q: A manufacturing firm wishes to give each 80 employees a holiday bonus. How much(P) is needed to…

A: Individuals or companies invest regular amounts in financial instruments to earn interest on the…

Q: a. A pension fund has to pay out $750,000 to the retirees at the end of every month for the next 50…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: Our clients saved $2,500,000 for retirement.  They wish to withdraw $20,000 from the fund each month…

A: An annuity is a contract where periodic payments are made in the future in return for a lump-sum…

Q: how much will the three project payments be worth at the time of her retirement?

A: Introduction: The term future value of annuity can be defined as the value of payments at some…

Q: fund is to be set up for an annual scholarship of $5000. If the first payment is due in three years…

A: Solved using Financial Calculator  FV = 5000 N = 3 years * 4 = 12 I/Y = 6.2/4 = 1.55 CPT PV = -…

Q: Our clients saved $2,500,000 for retirement.  They wish to withdraw $20,000 from the fund each month…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: If a donation of $100,000 is expected to pay out scholarships of $10,000 every year and the funds…

A: Here, to calculate time period we have to use the compound interest formula .   A = P 1+r100n…

Q: To benefit the ISU College of Business, Bill Vickers would like to establish a “perpetual”…

A: Future Value (FV)= $210,000 per year Time period (n)= 13 years  Annual return (i)= 4.1 percent…

Q: An employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the end of the…

A: Money discounting is the process of determining the present value of future cash flows. The interest…

Q: As a result of winning the Gates Energy Innovation​ Award, you are awarded a growing perpetuity. The…

A: In the financial system, perpetuity refers to a situation in which a stream of cash flow payments…

Q: .If the rate of interest per year is 5%,what is the amount of installment that the company should…

A: Annuity Payments: It is a series of payments compounded or discounted at a particular rate of…

Q: A trust notifies you that you are entitled a grant that would give you annual payments of $6,200 per…

A: Answer: Calculation of the present value of the grant: The present value of the grant will be equal…

Q: An employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the end of the…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: A business man must fund an account for him to pay the maintenance of the building after it shut…

A:

Q: A student needs $6000 every six months to pay living expenses while at college. It will take him 8…

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…

Q: Beginning a year from now, Bernardo O’Reilly will receive $20,000 a year from his pension fund.…

A: Present value is the current worth of future payments from the specific investment.…

Q: Mr. Joe decides to pay $40,000 annually to the 6 - year capital improvement to the Food Process…

A: Present Value(PV) is worth of amount that is received or paid at future date t current time. It is…

Q: Use the formula for the value of an annuity to solve:To offer scholarship funds to children of…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: A local retail franchise must buy a new piece of equipment in 6 years that will cost $89,000. The…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: A recent college graduate hopes to have 200,000 saved in their retirement account 25 years from now…

A: Here, Future value (FV) = 200,000 Number of years = 25 years Contribution per month = 150 Interest…

Q: Professor Dom wishes to set up a permanent scholarship paying $5,000 per annum, at the beginning of…

A: To determine Present value(PV) from the Future value(FV) , discounting is required.

Q: The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How…

A: The total number of employees is 50 and the total bonus to be received is $60,000 (50 employees ×…

Q: Today is your 23rd birthday.  Your aunt just gave you $1,000.  You have used the money to open up a…

A: Future value: The future value is the amount that will be received at the end of a certain period.…

Q: Assume that you will have a 10-year, $10,000 loan to repay to your parents when you graduatefrom…

A: The loan is to be paid in 10 annual installments of $1,490. It includes both the payment of interest…

Q: al interest to have th

A: An annuity is used in case of a future annuity – suppose an equal sum of money is invested in the…

Q: Your firm has a retirement plan that matches all employee contributions with employer contributions…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: If a college freshman invests a $10000 gift at 8% per annum compounded quarterly, how much can be…

A: Present value of investment (PV) = $10000 Interest rate = 8% Quarterly interest rate (r) = 8%/4 = 2%…

Q: felix jones, a recent engineering graduate, expects a starting salary of $35,000 per year. his…

A: Present value is defined as the current value of the future sum of funds or the cash flows stream at…

Q: You donate $20,000,000 to Greensboro College’s new teacher bonus program. What size annual bonus can…

A: The donation is an example of a perpetual annuity.  This is an indefinite  stream of cash flow…

Q: A business must raise $50,000 in 9 years. What should be the size of the owners' quarterly payment…

A: A sinking fund is a fund that contains money or funds set aside for paying obligations or debt or…

Q: In an effort to save money for early retirement an environmental engineering collegue plans to…

A: This problem belongs to future value of annuity due. since payment is at the start of the month.

Q: What is the size of the scholarship payments that students at a college would receive at the end of…

A: The scholarship amount will be the quarterly interest earned on such endowment fund

Q: The National Research Council is considering the establishment of a perpetuity to fund faculty…

A: Perpetuity refers equalized amount of payments received or paid for a infinite period of time. Value…

Q: You deposit $1,000 in a fund at the end of each year for a 10- year period. The fund pays 5%…

A: An amortization schedule is a complete table of periodic loan payments, showing the amount of…

Q: The president of a growing engineering firm wishes to give each of 20 employees a holiday bonus. How…

A: Given information: Number of employees 20 Nominal rate is 12% Future value is $2,500

Q: Jami Minard wants to receive an annuity of $5,000 at the beginning of each year for the next 10…

A: Using the present value function in excel

Q: Andrew Bogut just received a signing bonus of $1,000,000. His plan is to invest this payment in a…

A: Here, To Find: Part A. Number of years =? Part B. Annual deposits =?

Q: One month from​ now, Kelly will make her first monthly contribution of ​$250250 to a​ Tax-Free…

A: Given information in question monthly contribution is = $250 Expected return = 8% (per annum) Future…

Q: A business must raise $70,000 in 8 years. What should be the size of the owners' quarterly payment…

A: In this, we have to calculate future value FACTOR and from that, we can get sinking fund payment. A…

Q: You've received a $100,000 education grant and want to deposit the lump sum and withdraw an equal…

A: PV=A×1-11+RNR pv=principal r=rate of interest per period n=number of period

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.