The present value of $500 to be received at the end of each year for seven years at a discount rate of 8 percent is   ?  .

Q: Find the present value of the following (1) a single payment of $12,000 at 6 percent for 12 years,…

A: 1. Present value = $12000 x PVIF (6%, 12 years) = $12000 x 0.49697 = $5,963.63

Q: What is the present value of a stream of $800 cash payments, each to be made at the beginning of the…

A: Simple Annuity due refers to the payment system where amount paid or received in eac period is not…

Q: What is the aggregate present value of $500 received at the end of each of the next three years,…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Find the present value and the compound discount of $6 600.00 due in seven years, three months, if…

A: It is given that,Future value is $6,600.Interest rate is 7.2% compounded quarterly. So, interest…

Q: The annual discount rate is 7.70%. a. What is the present value of a perpetuity that pays 2,000 at…

A: Perpetuity is a situation where a stream of Cashflow payments continues indefinitely or is an…

Q: The future value of a P20,000 annuity due deposited at 8 percent compounded annually for each of the…

A: The future value of annuity due is the value of the series of payments in the future time period on…

Q: What is the present value of $2,100 to be received 14 years from now assuming a discount rate of…

A: Given information: Future value of amount is $2,100 Number of years is 14 Discount rate is 3.7% for…

Q: Find the present value of $10,000 payable in 10 years if the interest rate is 5 percent per year…

A: Time value of money  Time value of money is a core principle of finance according to which money is…

Q: The present value of a savings account that will earn 3 percent annual interest and be worth $2,000…

A: Given: Rate of interest = 3% Future value is $2,000 Formula to calculate present value: Where,PV is…

Q: What is the value today of receiving six annual payments of $400,000, beginning one year from now,…

A: Using the scientific calculator, we can calculate the NPV of the cash flows.  Enter the value as…

Q: What is the present value of a $500 payment made in four years when the discount rate is 8 percent?

A: We need to calculate the present value from below given details in this question: Future value =…

Q: What is the present value of $6,000 to be received at the end of 6 years if the discount rate is…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: You receive annual payments of $4,800 at the beginning of each year for 7 years. The discount rate…

A: The total value of yearly payments at a particular date in future for a given discount rate is…

Q: What is the future value of $200 received today and deposited at 8 percent compounded semi annually…

A: Formulas: Future value = Amount *(1+rate)^years

Q: What is the present value of a $120,000 cash flow to be received at the beginning of each of the…

A: Amount  of Cash flow = $120000 at the beginning of the year Years(n) = 20 Annual rate(r) = 9%…

Q: P100 is received at the end of one year, P500 at the end of two years, and P1000 at the end of three…

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

Q: The present value of $500 to be received at the beginning of each year for seven years ata discount…

A: The formula to compute present value annuity due is as follows:

Q: What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs…

A: Computation of effective annual rate when rate is 8% and compounding is semiannually is as…

Q: The future value of $500 to be received at the end of each year for seven years at adiscount rate of…

A: Computation of future value:Therefore, the future value is $4,461.40.

Q: What is the present value of a $1,500 payment made in nine years when the discount rate is 8…

A: In this question we are required to compute the present value from following details: Annual payment…

Q: What is the present value of $1,552.90 due in 10 years at (1) a 12 percent discount rate and (2) a 6…

A: Compute present value of $1,552.90 due in 10 years at 12% discount rate as shown below:

Q: The future value of $200 received today and deposited at 8 percent compounded semi-annually for…

A: Future value is the value of an asset that will grow over time. It can be found out by multiplying…

Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…

A: GIVEN, PRESENT VALUE=$1000 future value=$1276.30 n=5

Q: The future value of $500 to be received at the beginning of each year for seven years at a discount…

A: Future value is the value of a current asset or any kind of an asset which is to be grown over a…

Q: What is the present worth of each given series of payments?(a) $12,000 at the end of each year for…

A: a) Hence, the present worth is $15315.38. b) Hence, the present worth is $45327.06.

Q: Compute the future value o

A: Future Value is defined as the amount that is accumulated at some upcoming period of time. The…

Q: What is the future value of $1,200 in 20 years at an APR of 8.00 percent compounded semiannually?

A: The amount can be calculated with the help of future value function

Q: What is the present value of the following annuities? 70 a year for 3 -years discounted back to the…

A: Annuity referes to the payments made at regular interval. It could be ordinary annuity when payments…

Q: What is the value today of receiving five annual payments of $500,000, beginning one year from now,…

A: Present value = Cash Flow 1/(1 + r)1 + Cash flow 2/(1 + r)2 + Cash Flow 3/(1 + r)3 + Cash flow 4/(1…

Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…

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

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

Q: What is the present value of $1,552.90 due in 10 years at (1) a 12 percent discount rate and (2) a 6…

A: 1 2 FUTURE VALUE 1552.9 1552.9 DISCOUNT RATE 12% 6% YEARS 10 10 PMT 0 0   ANNUALLY…

Q: The present value of $10,000 discounted at 5% per year and received at the end of 5 years is

A: Discounting of money is the evaluation of the present value of cash flow, which is likely to be…

Q: What is the present value of a $750 payment made in three years when the discount rate is 5 percent?

A: In this question we need to compute the present value of $750 payment in three years.

Q: What is the present value of $100,000 to be received at the end of 25 years given a 5% discount…

A: Present value if the value of a future amount at current time. Present value formula: Present Value…

Q: If the present value of $444 to be paid at the end of one year is $400, what is the one-year…

A: Discounting is a technique to compute the present value (PV) of future cashflow by considering…

Q: The present value of $500 to be received 7 years from now at an interest rate of 8percent is ? .…

A: a) Present value of $500 which will be received 7 years from now at 8% can be calculated using a…

Q: The present value of an ordinary annuity of $2,350 each year for eight years, assuming an…

A: Given information is: Ordinary annuity each year = $2350 Period = 8 years Opportunity Cost = 11%

Q: What is the present value of an annuity due of 2,000 per year for 15 years discounted back tobthe…

A: In present value of annuity due, payment is due at the beginning of the year. We need to use formula…

Q: what is the present value of $800 to be received at the end of eight years assuming an interest rate…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: The future value of $500 to be received at the beginning of each year for seven years ata discount…

A: Annuity = $500Time Period (t) = 7 YearsDiscount Rate (r) = 8% Calculation of future value is as…

Q: The present value of $500 to be received each year for seven years with the first payment to occur…

A: Future value = $ 500 Discount rate = 8% P.V = ∑n = 511F.V(1 + r)n         =  $500(1 + 8%)5+$500(1 +…

Q: What is the present value of a $2500 annual perpetuity at the end of each year, discounted back to…

A: The company is considering the value of perpetuity as a receipt of cash flows for the infinite…

Q: What is the value today of $4,800 per year, at a discount rate of 8 percent, if the first payment is…

A: The formula to compute present value of annuity as follows: Present value of annuity=C×1-1+r-nr

Q: Which one of the following is the correct formula for computing the present value of $600 to be…

A: Solution: Present value is other ways known as current\ present discounted value.

Q: What is the present value of a $200 payment in one year when the discount rate is 7 percent?

A: We require to compute the present value in this question from following details: Future value = $200…

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.