Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.) a.    What is the future value of $7,000 at the end of 5 periods at 8% compounded interest? b.    What is the present value of $7,000 due 8 periods hence, discounted at 6%? c.    What is the future value of 15 periodic payments of $7,000 each made at the end of each period and compounded at 10%? d.    What is the present value of $7,000 to be received at the end of each of 20 periods, discounted at 5% compound interest?

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A: Future value of a sum of money refers to the worth of that sum of money on a specific time in the…

Q: What is the present value of $39,000 to be received at the end of each of 20 periods, discounted at…

A: PVIF(3%,20) = 14.8775

Q: Given below are the future value factors for 1 at 6% for one to five periods. Interest is compounded…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: Given an interest rate of 4.8 percent per year, what is the value at date t = 10 of a perpetual…

A: Note: The payments start at t = 20, indicating perpetuity payment made at the end of t = 19.  This…

Q: What is the present value of twelve annual payments of $5,000, starting today if the interest rate…

A: Annual payment = $ 5,000 Annual interest rate = 13% Number of annual payments = 12

Q: present

A: Formula to calculate Present value: PV = FV/(1+r)^n Where PV is the present value, FV is the fututre…

Q: For each of the following cases, indicate (a) to what interest rate columns and (b) to what number…

A: (1) Compounded annually means the interest is paid once a year. Therefore, we would look up for 4%…

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 will be the present value, if $6,800 is discounted back 4 years at an interest rate of 4%…

A: Interest rate=4%Period=4yearsFuture value=$6800

Q: What is the present value of $4000 to be received in 6 years, if the interest rate is 5% p.a.,…

A: The future value (FV) is $4,000. The interest rate is (RATE) is 5%. The maturity (NPER) is 6 years.…

Q: For each of the following cases, indicate (a) to what rate columns, and (b) to what number of…

A: Both future value of annuity and present value of annuity considers compounding in its calculation.…

Q: What is the present value of $2,300 received 5 years from now using a 3% interest or discount rate,…

A: In the given question we need to compute the present value from below details: Future value = $2300…

Q: Using the appropriate interest table, answer the following questions. (Each case is independent of…

A: a. Future value of 20 periodic payments of $4,000 = $4,000 x FVAD (8%, 20) = $4,000 x 49.42292 =…

Q: For the following amount at the given interest rate compounded continuously, find (a) the future…

A: Given, P = $5300 r = 3.4% = 3.4/100 = 0.034

Q: f the stated interest rate is 10%, number of years is 8 , and market interest rate is 12% compounded…

A: Formula: Present value Annuity factor = [ 1 - 1 / ( 1 + i )N ] / i

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.…

Q: Compute the present value of a $3300 deposit in year 2, and another #2800 deposit at the end of year…

A: Cash flow 1= 3300 Cash flow 2= 2800 Interest rate = 9%

Q: What's the present value of $4,000 discounted back 5 years if the appropriate interest rate is 4.5%,…

A: Discounting is a technique through which present value of the future amount is calculated. It is…

Q: Solve the questions below: a. What is the future value of $1,750 in 3 years at an interest rate of 4…

A: Future value is the value of present investment in future after compounding of the present cash…

Q: What is the present value of $73,000 in 11 years if the interest rate is 8% compounded…

A: Formula of Prsent value interest factor = 1(1+rm)m×t where; r = annual interest rate m = number of…

Q: (Computation of Future Values and Present Values) Using the appropriate interest table, answer each…

A: a. Future Value of $7,000 = $7000*Future value factor (8%, 5 years)…

Q: What is the present value of $11,000 to be received in two years if the interest rate is 5% p.a.?…

A: given future value = 11000 Years = 2  rate = 5%

Q: Find the present worth of a series of equal quarterly payments of 750.00 for 16 years with the first…

A: End of quarter payments = 750 Total Time Period = 16 years* 4 = 64 Quarters Interest Rate first 20…

Q: Using the appropriate interest table, compute the present values of the following periodic amounts…

A: a. Present values = Amount receivable at the end of each period for 8 periods x PVIAF (12%, 8) =…

Q: What is the difference in future value if $20,000 is invested at 5% over ten years, with one option…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: the interest rate is 10% and compounding is semiannual, what series of equal annual ansactions is…

A: The series of annual equal payment that are equivalent to the present value of cash flow of series…

Q: What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded…

A: Present value (PV) = $3100 Period = 17 Years Number of semiannual periods (n) = 17*2 = 34 Interest…

Q: Given an interest rate of 5.7 percent per year, what is the value at t = 8 of a perpetual stream of…

A: Annual Payment = $4,100Interest Rate = 5.7% Calculation of value of perpetuity:

Q: What is the present value of $3,950 to be received at the beginning of each of 29 periods,…

A: Present value of money is the value of future money at present. The value of money received in…

Q: What's the future value of $1,500 after 5 years if the appropriate interest rate is 5.6%, compounded…

A: Future value = Present value * (1+r)^n R is the rate here it will be 5.6/2 = 2.8% per semi annual…

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

A: Future Value = Present Value * (1+r)^n Where. r = rate of interest n = no. of years

Q: For each of the following cases, indicate (a) to what rate columns, and (b) to what number of…

A: Time value of money:   The value of money changes over a period time. The value of money depends on…

Q: (Computation of Future Values and Present Values) Using the appropriate interest table, answer the…

A:

Q: What's the present value of $12,000 discounted 5 years if the appropriate interest rate is 4.5%,…

A: The value today can be calculated with the help of present value function

Q: What is the future value of $1,750 in 17 years assuming an interest rate of 6.5 percent compounded…

A:

Q: For each of the following situations involving single amounts, solve for the unknown (?). Assume…

A: The present value of $24,836 is the result of multiplication of the future value, $40,000 with the…

Q: What is the value of the following payment stream 1 year from now, at a simple interest rate of…

A: solution Given Simple interest rate        =4.4% Amounts $10000 ,3 years ago $6000 ,1.25 years ago…

Q: What's the present value of $18,500 discounted back 5 years if the appropriate interest rate is 9%,…

A: PV = FV / (1 + r / n)nt Where, PV = Present value FV = Future value r = Rate of interest…

Q: (Computation of Present Value) Using the appropriate interest table, compute the present values of…

A: Requirement a: Present values = Amount receivable at the end of each period for 8 periods x PVIAF…

Q: he discount factor corresponding to a 3-year continuously compounded interest rate is 0.765667. What…

A: The effective rate is the after considering the impact of compounding and always more than actual…

Q: What's the present value of $14,000 discounted back 5 years if the appropriate interest rate is…

A: Future Value = 14,000 Semi Annual Compounding Time Period (N) = 10 semi annual periods Interest Rate…

Q: Assume that you are preparing an amortization table for a three-year note with a stated and yield…

A: Amortization table is the table which shows all the amortization and the interest expenses and as…

Q: 2. $4200 is invested for 9 months at an annual simple interest rate of 12%. How much interest will…

A: Given:Principal amount=$4200Interest rate=12% annuallyTime period=9 monthsTo compute amount of…

Q: Compare the interest eamed by $10,000 for seven years at 8% simple interest with interest earned by…

A: Given:Principal (P)=$10,000Time (T)=7 yearsInterest rate=8%For simple…

Q: For each of the following cases, indicate (a) to what rate columns, and (b) to what number of…

A: For 1. Option Rate of interest  number of periods a.  9% 9 b.  2% 20 c.  5% 30

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.