The present value of $60,000 to be received in one year, at 6% compounded annually, is _____ (rounded to nearest dollar). Use the following table, if needed. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286

Q: hat is the future value of 15 periodic payments of $26,000 each made at the end of each period and…

A: Future values of payments includes the principal payment and payment of interest and present value…

Q: The present value of $77,000 to be received in 2 years, at 12% compounded annually, is (rounded to…

A: Given that  Future value = 77000  Time (n) = 2 years  Rate (r) = 12 %

Q: The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years…

A: Annual withdrawal (P) = $ 1500 Number of annual payment (n) = 25 Annual interest rate (r) = 10%

Q: Tommy John is going to receive $1,000,000 in three years. The current market rate of interest is…

A:

Q: If $17,000 is invested at 4.5% for 20 years, find the future value if the interest is compounded the…

A: Here, The future value is FV. The present value is PV. The rate of interest is r. The maturity…

Q: The present value of $30,000 to be received in 5 years at an interest rate of 16%, compounded…

A: a)   Present value FV×(1÷(1+r)^n)         Here,         1 rate per annum 16.00% 2…

Q: The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years…

A: Present value of annuity due is the sum of present value of all the cash flow that occur at the…

Q: If $18,000 is invested at 2.5% for 20 years, find the future value if the interest is compounded the…

A:

Q: The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years…

A: Annual withdrawal (P) = $ 1500 Number of annual withdrawal (n) = 25 First payment (t) = 5 years…

Q: Assuming an annual effective interest rate of 5%. Which of the following annuities with 12 payments…

A: The present value of the annuity is calculated by discounting the future payments at the required…

Q: What present value amounts to $25,000 if it is invested for 20 years at 5% compounded annually?…

A: Solution Concept The interest rate compounded annually means the interest is charged on interest and…

Q: The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years…

A: Annual withdrawal (C) = $ 1500 Number of annual payment (n) = 25 First payment period (t) = 5…

Q: How much invested now at an interest rate of t10% compounded annually would be just sufficient to…

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

Q: Tommy John is going to receive $1,000,000 in three years. The current market rate of interest is…

A:

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: What is the present value of annual payments of $2,000 for 12 years at 1 percent?

A: Present Value of Annuity is that amount which was invested by the investor today for receiving the…

Q: Given below are the future value factors for 1 at 10% for one to five periods. Interest is…

A: It is method of computing interest where interest is calculated over interest as well.

Q: . A lump sum of $30,000 is invested at 6% compounded monthly for 15 years. For 15 years it then pays…

A: Present Value = $30,000 Interest Rate = 6% compounded Monthly Time Period = 15 Years

Q: The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years…

A: Annual withdrawal = $ 1500 Number of annual withdrawal = 25 Interest rate = 10% First withdrawal = 5…

Q: How much must be invested at the beginning of each year at 11%, compounded annually, to pay off a…

A: The problem relates to ANNUITY DUE. Annuity due is an annuity whose payment is due immediately at…

Q: At a compound interest rate of 10% per year, the amount that $10,000 one year ago is :equivalent to…

A: Compound Interest  Compound interest is the interest computed on the initial principal amount as…

Q: and has a loan of $8,500 compounded quarterly for four years at 10%. What is the eff ere to view…

A: Effective interest rate is interest rate considering effect of compounding.

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: Suppose you deposit $2,000 at the end of eachquarter for ten years at an interest rate of 9%…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: If Php 5,000 becomes Php 9,734 after 12 years, when invested at an unknown rate of interest…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: The present value of $66,000 to be received in two years, at 12% compounded annually, is needed.…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: If $33,500 is invested at 6.8% for 30 years, find the future value if the interest is compounded the…

A: Investment = $ 33500 Interest rate = 6.8% Period = 30 Years

Q: A bank makes a 30 year Fully Amortizing FRM for $2,000,000 at an annual interest rate of 4.125%…

A: Here, Annual Interest Rate on Loan is 4.125% Time Period of Loan is 30 years FRM Amount is…

Q: At an effective annual interest rate i, the present value of S10 per year, payable at the beginning…

A: In finance, the time value of money rule states that the sum of money today has more purchasing…

Q: What present value P amounts to $300,000 if it is invested at 5%, compounded semiannually, for 19…

A: PV  is Present value FV is Future value i.e. $300,000 r is Interest rate i.e. n is number of…

Q: The amount of $10,000 is invested and will be worth $21,000 in nine years. What in the continuoushy…

A: Continuous Compounded Interest rate is the interest rate that is calculated on the principal amount…

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: What present value P amounts to $290,000 if it is invested at 6%, compounded semiannually, for 17…

A: In the given question the maturity value of investment (i.e., Future Value) is $ 290,000. This is…

Q: If $13,000 is invested at 2.5% for 30 years, find the future value if the interest is compounded the…

A: ACCORDING TO THE RULE, WE WILL ONLY ANSWER THE FIRST THREE SUBPARTS, FOR THE REMAINING SUBPARTS,…

Q: If $15,000 is invested at 3.5% for 20 years, find the future value if the interest is compounded the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Determine the present value of $170,000 to be received at the end of each of four years, using an…

A: Solution a:   Amount PV Factor Present Value First Year $170,000.00 0.94787 $161,138 Second…

Q: The present value of $40,000 to be received in two years, at 12% compounded annually, is Present…

A: According to the concept of present value the value of money decreases each year , thus the value of…

Q: Determine the present value of $210,000 to be received at the end of each of four years, using an…

A: Formula: Present value of Amount = yearly Amount x PV factor  Multiplying yearly amounts with PV…

Q: Determine the discount rate assuming the PV of $1080 at the end of 1-year is $980? 2. $9,800 is…

A: Present value=$980Future value=$1080Period=1

Q: Fill in the table below when P= $9,000, S= $3,000 (at the end of four years), and i 12% per year.…

A: Here, P or Investment is $9,000 S or Salvage Value is $3,000  Time Period is 4 years MARR or i is…

Q: Compute the amount of money to be set aside today to ensure a future value of $1,400 in one year if…

A: Present value is the value of an asset in today’s term. In other words it is the amount of money…

Q: CalculatorDetermine the present value of $43,000 to be received in one year, at 6% compounded…

A:

Q: Determine the present value of $200,000 to be received at the end of each of four years, using an…

A:

Q: What is the value today of receiving $5,000 at the end of each year for the next two years, assuming…

A: SOLUTION : GIVEN, Annual payment = $5,000 Interest rate = 10% = 0.10  Number of years = 2 years…

Q: If $82,000 is invested in an annuity that earns 5.3%, compounded quarterly, what payments will it…

A: The question gives the following information: Present value=$82,000Rate=5.3%Time period=4.5 years

Q: The present value of $64,000 to be received in one year, at 6% compounded annually, is _____…

A: Present value = Present value of principal where,                         Present value of principal…

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.