What is the future value for $2000 for 7 years at 8% interest and with an additional $2500 added at end of 4 year. Then what is the present value of $2000 at 7 years with 8% interest and with additional $2500 added at end of 4th year.

What is the future value for $2000 for 7 years at 8% interest and with an additional $2500 added at end of 4 year. Then what is the present value of $2000 at 7 years with 8% interest and with additional $2500 added at end of 4th year.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

See similar textbooks

Related questions

Q: How much money would have to be deposited today to accumulate:

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Find the rate of interest if the principal value is $28000 with an interest value is $9000 after 5…

A: Principal value (P) = $28000 Interest value (I) = $9000 Period (n) = 5 Years

Q: You are promised an 8 year streams of income from buying a new technology at the initial amount of…

A: Step 1 Given a certain rate of return, present value (PV) is the current value of a prospective…

Q: Find the present value and the future value of $2000 for 5 years with interest rate of 8% compounded…

A: Present Value is the current value of all the cash flows which is to be received in the future which…

Q: Find the present value that will generate the future value of $8000, compounded annually at 5% for 2…

A: Formulas: Present value = Future value / (1+rate)^years

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

Q: Jennifer intent to calculate the future value of the following cash flow at the end of 5 years,…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: What is the future value in 4 years of €1,000 invested in an account with a stated annual interest…

A: Amount Invested is 1,000 Time period is 4 years Interest rate is 10% To Find: Future Value…

Q: What is the present value of an investment of $5,000 per year for 8 years with 10% interest

A: Given information : Amount per year = $5,000 Number of years = 8 Annual interest rate = 10%

Q: If a sum of $5000 is deposited now, $7500 is deposited 3 years from now, And $2000 per year in years…

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

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: If you invest 5000 dollars today at a compound interest rate of 10 percent, compounded…

A: Future value can be defined as the worth of money at a future date, computed in accordance with the…

Q: Find the simple interest on a $1600 investment made for 3 years at an interest rate of 8%/year. What…

A: Simple Interest: The amount earned on an investment at a given rate of interest at the end of the…

Q: What single investment made today, earning 10 % annual interest, will be worth $10,000 at the end of…

A: A) The present value of a future value can be calculated using the formula below: Given; FV = 10000…

Q: amount

A: Compound interest formula: Formula for calculating PV is: PV = FV/(1+i/n)^nt where FV is the future…

Q: $10,000 as a bonus after 6 years. You have calculated the present value of this bonus and the answer…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: 14,000 as a bonus after 6 years. You have calculated the present value of this bonus and the answer…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: nd the present value that will generate the future value of $1,000 at 7% compounded yearly for 7…

A: Using excel PV function

Q: a) What would be the accumulated value of ₺ 5000 in a saving account at 8% per year for 4 years when…

A: Using Future value in excel.

Q: If you invest $4,000 today at 10% interest, what is the value of the investment at the end of 5…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Rank the following from highest present value to lowest present value. A payment of $5000 to be…

A: Option 1. Payment of 5000 N = 5 Option 2. Payment of 5000 N = 2 Option 3. Payment of 2000 in 1…

Q: Use the compound interest formula A=P (1+(r)/(n))^(nt) to compute the total amount after $2000 is…

A: An interest method in which current interest is computed by multiplying the interest rate by the sum…

Q: singlê investment made today, earning %10 annual interest, will be worth $10,000 at the end of

A: Assuming compounding of interest take place yearly. We need to use this formula…

Q: Find the present value of $10,000 received at the start of every year for 20 years if the interest…

A: Present Value: The present value is the value of the sum received at time 0 or the current period.…

Q: Find the simple interest on a $2000 investment made for 4 years at an interest rate of 6%/year. What…

A: Accumulated amount will be the future value of the initial investment. The future value will consist…

Q: what is the present value of $2500 per year for 9 years discounted back to the present at 11 percent

A: The calculation is shown: Hence, the PV is $13,842.62.

Q: If you deposited $10,000 each year for 10 years and the interest rate is 5.00%, what is the value at…

A: INFORMATION: RATE 5% YEARS 10 PMT (MONTHLY DEPOSIT) 10000 PRESENT VALUE $0

Q: Please calculate the initial amount needed to have $10,000 after 8 years at 6% compounded quarterly…

A: Here, Future Value Required is $10,000 Compounding Period is quarterly i.e 4 periods in a year…

Q: What is the present value of receiving $2,500 at the end of each year for 5 years, assuming 7%…

A: As it is the case of annuity due, thus, the first table will be used @7%, 5 years.

Q: What is the present value of $8,000 received 10 years from today when the interest rate is 4% per…

A: The payment amount which is expected to receive in future is discounted for the period between today…

Q: ve $12,000 as a bonus after 6 years. You have calculated the present value of this bonus and the…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: future value of an investment made 5 years ago is P150,000. If the investment offered an annual…

A: Effective rate goes on increasing if the compounding goes on increasing. And effective rate is less…

Q: What's the future value of $500 after 5 years if it earns 6%, annual compounding?

A: Given:Present value=$500Time period=5 yearsInterest rate=6% annual compoundingTo compute:Future…

Q: What is the Present Value of $500 received in eight years with an interest rate of 8 percent?

A: Given information: Cash flow or Future value is $500, Interest rate is 8%, Number of years is 8

Q: Assume that you are going to receive $350,000 in 10 years. The current market rate of interest is…

A: Present value of amount to be received in 10 years = Amount to be received x Present value factor…

Q: For an original ( first ) amount of JD 1500 , at a Simple Interest Rate i = 10 % per year , the…

A: Question 1 Original amount = 1500 Interest rate = 10% Time Period = 6 years Question 2 Original…

Q: For 10 years with total payments of $ 10000 per year, calculate the total amount accumulated after…

A: Calculation of the total amount accumulated after 10 years: Calculation with formulae:

Q: Five years ago, you entered into a 10-year investment with a simple interest of 4% per annum and a…

A: Simple interest is simple interest without considering the impact of compounding on that but…

Q: an amount of N$10000 is invested for 10 years at an interest rate of 6% per year compund interest.…

A: Using the FV function in excel

Q: The Present Worth of $2200 in year 1 and amounts increasing by $500 per year thru year 5 at an…

A: Given information: Cash flow in year 1 is $2,200, Cash flow increases by $500 Interest rate is 13%,…

Q: f the final value is $4400 at the end of 6 years and the simple rate of interest is 8%, what is the…

A: DETAILS HERE 8.00% YEARS 6 PMT 0 FUTURE VALUE $4,400

Q: I need to answerthese questions can you help me out, Questions 4,5 4- What is the current value…

A: Note: It is a case where no single question is specified to solve among the multiple questions…

Q: What is the future value of $1,500 invested today at 7% interest in 6 years with interest compounded…

A: In given question we need to compute the future value of $1500 invested today for 6 years at 7%…

Q: What is the amount of the lump sum assuming the same 4% annual compounding

A: Information Provided: Term = 20 years Payment = $2000 Interest rate = 4% compounded annually

Q: How much more could you have earned over a 10 year period if interest had compound annually?

A: Simple interst formula is I = P*R*T Where I is Interest,P is principle,R is rate of interest and T…

Q: ow to Find the future value and compound interest on $6,000 at 4% compounded semiannually for two…

A: Solution: Future value is the value of asset or money at future date at an assumed rate of interest.…

Q: What is the future value of $1,100 invested today at 5% interest in 3 years with interest compounded…

A: In given question we need to compute the future value of $1100 invested today at 5% for 3 years.

Question

What is the future value for $2000 for 7 years at 8% interest and with an additional $2500 added at end of 4 year.

Then what is the present value of $2000 at 7 years with 8% interest and with additional $2500 added at end of 4th year.

Thank you

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%
If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
How much would you invest today in order to receive $30,000 in each of the following (for further instructions on present value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%
Conestoga Plumbing plans to invest in a new pump that is anticipated to provide annual savings for 10 years of $50,000. The pump can be sold at the end of the period for $100,000. What is the present value of the investment in the pump at a 9% interest rate given that savings are realized at year end?
A company wants to deposit a lump sum now that will give the same future value in 20 years as 20 year-end payments of $2000 invested at 4% compounded annually. What is the amount of the lump sum assuming the same 4% annual compounding
In how many years is required for $2000 to increase by $3000 if interest is 12% compounded semi annually. a. 7.86 years b. 8.52 years c. 10.75 years d. 9.5 years
Use the present value formula to determine the amount to be invested now, or the present value needed. The desired accumulated amount is $120,000 after 2 years invested in an account with 2% interest compounded quarterly.
What is the present value of $2,000 received today, $2,500 received at the end of each of the next ten years and $1,000 received at the end of the 11th year , assuming a required rate of return of 6%?
Use the present value formula to determine the amount to be invested now, or the present value needed. The desired accumulated amount is $95,000 after 14 years invested in an account with 4% interest compounded semiannually. The amount to be invested now, or the present value needed, is
What is the future value of $5,000 invested for 4 years at 7.5% interest compounded continuously?
What is the accumulated value of P50,000 for 5 years and 3 months at 6.5% simple interest?