The income stream b = (1000, 1500, 2500, 4000) consists of payments made at the end of the next four years. Find the present value of b for an interest rate of 9% compounded annually.

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A: Calculate the annual income over a period of 5 years as follows:MS-Excel --> Formulas -->…

Q: The annual interest, compounded annually at which $510 must be invested for it to grow to $2,005.82…

A: Present value (P) = $ 510 Future value (F) = $ 2005.82 Period (t) = 11 Years

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A: The interest rate can be calculated with the help of continuous compounding function

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A: Present Value The value in the present of a sum of money, in contrast to some future value it will…

Q: w much will be in an account at the end of five years the amount deposited today is $10,000 and…

A: The given problem can be solved using FV function in excel. FV function computes  future value for…

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Q: Suppose that a company borrows 20,000 for 1 year at a stated rate of interest of 9 percent. What is…

A: Annual percentage rate (APR) if interest is paid to the lender annually = (1 + Stated rate / Number…

Q: How much compound interest is earned on a 6.5-year investment that has a rate of return of…

A: Future value (FV) = $ 9600 Period = 6.5 Years Period in quarters (n) = 6.5*4 = 26 Interest rate = 6%…

Q: If money is worth 8% compounded quarterly, compute the present value of the perpetuity of ₱1,000…

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…

Q: What is the future equivalent at EOY 8 of $5,000 annual payments made at the beginning of each year…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask…

Q: Compute the future value of annual payments of $1,000, paid for 4 years, using an interest rate of…

A: Future value can be defined as the future worth of the present cash flow that will be received from…

Q: nual, semiannual, and quarterly compunding periods, (1) calculate the future value if $5000 is…

A: Future value can be computed using FV function in excel. FV function computes interest rate for…

Q: 1.If money is worth 5% compounded semi annually, find the present value of a sequence of 12 semi…

A: 1) Interest rate (r) = 5% per annum = 2.5% semiannually Each payment (P) = P 450 Total payments (n)…

Q: What is the equivalent present value of the following series of payments: $10,000 the first year,…

A: Calculate the equivalent present value as follows:

Q: If $650 is invested at 6% compounded (A) Annually, (B) Quarterly, (C) Monthly, what is the amount…

A:

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: Deposit amount (P) = $ 12000 Period = 5 Years Number of quarterly period (N) = 5*4 = 20 Annual…

Q: What are the future value and the interest earned if $3400 is invested for 6 years at 8% compounded…

A: Future value is the value of present cashflow compounded at the specified rate to future date.…

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A: Present value is the sum of discount value of all future cash flows.

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A: The nominal rate can be computed with the help of future value function and logarithm values.…

Q: An investment of S6,560 earns interest at the rate of 5% and is compounded quarterly. What is the…

A: Investment = 6560 Interest rate = 5℅/4 = 1.25℅ per quarter N = 28 quarters (7 years)

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A: Please refer to the image below

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Q: Evaluate the net present value of following streams of income: a. $1000 per year at an interest rate…

A: Present Value of Perpetuity = Perpetual Income / Interest Rate

Q: At what interest rate will ₱30,750 amount to ₱44,875 in 4 years and 6 months, if interest is…

A: Data given: Description Data FV (P) 44875 PV (P) 30750 r= rate (Compounded semiannually)…

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A: The future value of the account can be computed by using the future value of a single deposit…

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: Here, Principal Amount (PV) is $13,000 Annual Interest Rate (r) is 3% Compounding Period (m) is…

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

Q: Assume the following annual payments of notes payable of Demi Company with 10% discount rate. 1st…

A: Time value of money concept says that a sum of money invested today will have more value in future…

Q: Suppose an income stream will produce income at a rate of 4000 + 1000t dollars per year for 5 years,…

A: Present value Present value of an amount with continuous compounding. With continuous compounding…

Q: A one-time investment is made in the amount of $9,200 for 15 years at an APR of 6%. Compound…

A: given, principal = $9200 rate = 6%

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A: Long Term Capital gain is the gain on sale of property held for more than 2 years. It is the…

Q: What is the present value of an annual payment of $9,500 discounted back 8 years at an annual rate…

A: given, A=$9500 r=3% n=8

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A: Assuming Present Value = Interest Paid = 1000 Future Value = Present Value + Total Interest paid…

Q: A principal, $30, is invested at 6% interest for 2 years. Determine the future value if the interest…

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

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A: Time value of money- It is based on the concept that money earned today is worth more than similar…

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A: Investment means engaging your funds to earn some additional money over the period. interest is a…

Q: A continuous stream of income is being produced at the constant rate of $60,000 per year. Find the…

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

Q: Using the compound interest formula, calculate both the value of the investment and the interest…

A: Investment amount (PV) = $4000.00 Period = 5 Years Semi annual period (n) = 5*2 = 10 Interest rate =…

Q: what is the present value of a stream of payments that begin in year one at $5000 and increase by…

A: Information Provided: Interest rate = 8% Year 1 payment = $5000 Increment in payment = $500

Q: For a sum of 1,050 to triple itself in 8 years and 6 months, what must be the rate of interest…

A: Investment amount (PV) = 1050 Future value (FV) = 1050*3 = 3150 Period = 8 Years and 6 Months Semi…

Q: Determine how much is in each account on the basis of the indicated compounding after the specified…

A: As per the guidelines we are allowed to solve the first three parts only The account value can be…