What is the future value of $5,000 deposited for four years compounded atan annual rate of 10 percent?

Q: What amount must be set aside now to generate payments of $60,000 at the beginning of each year for…

A: The series of payments discussed here is a form of an annuity due wherein an equal payment is made…

Q: What present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually?…

A: Present Value = Future value / (1+r)^n Where, r = rate of interest i.e. 8% n = no. of years i.e. 20…

Q: What is the future value of $550 invested for 5 years at 15 percent compounded annually?

A: Following details are given in the question: Present value (Investment today) = $550 Time period = 5…

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: Find the present value of $700 due in five years’ time at 6% p.a. compounded monthly

A: We need to use the concept of time value of money to get the answer. According to time value of…

Q: If P60,000 is due at the end of 4 years at 5% compounded annually. What is the present value?

A: Present value is the value of future cash-flow today. In other words the current value of the…

Q: What is the future value of a stream of $800 cash receipts, each to be received at the beginning of…

A: Annual cash receipts (C) = $ 800 Number of annual cash receipts (n) = 4 Annual interest rate (r) =…

Q: The future value of $3000 deposited a year of 4 years earning 6 percent would be

A: The question is related to Time Value of money. Future Value  is the value at some future time of a…

Q: What amount must be set aside now to generate payments of $30,000 at the beginning of each year for…

A: Annual payment (P) = $30,000 Interest rate (r) = 5.52% Period (n) = 10 Years

Q: An annual perpetuity of $10,000 has a present value of $250,000.  What is the annual interest rate?

A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…

Q: What amount must be set aside now to generate payments of $40,000 at the beginning of each year for…

A: The formula to calculate present worth is given below: Here, i is interest rate. n is number of…

Q: Find the present value of $10,000 if interest is paid at a rate of 9% per year, compounded anually…

A: The provided information are: Future value (FV) = $10,000 Rate of interest (r) = 9% = 0.09 Time…

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: A sum of money invested now at 10 percent compounded semi-annually is to provide payments of $1500…

A: Let the money to be invested now = X Semiannual payment (A) = $1500 Number of payments (n) = 16 r =…

Q: Suppose you were to receive $1,000 at the end of 10 years. If your opportunity rate is 10 percent,…

A: given, FV = $1000 N=10 R=10%

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: What is the present value of a $400,000 cash flow to be received at the end of each of the next 10…

A: given, A=$400,000 r=9% n = 10

Q: What present amount of money must be deposited at 11% interest compounded annually to grow to…

A: Formula to calculate compound interest is: A = P(1+r/n)^nt Where A is the future value, P is the…

Q: Find the present value of the following future amount. $200,000 at 10% compounded quarterly for 15…

A: Future Amount is $200,000 Interest rate is 10% Compounded Quarterly Time period is 15 years…

Q: Find the present value of the following annuities: 100 payable every month for 5 years if the…

A: Present value (PV) also termed as current value refers to the sum of all future cash flow (CF) or…

Q: A sum of $1,000 is deposited at 8% interest, compounded annually for 5 years. What is the future…

A: In this question we require to compute the future value of investment from the details given.

Q: Find the future value of the indicated principal 35000 at 6% compounded semi annually for 12 years

A: Future value (FV) is the value of a current asset at a future date based on an assumed rate of…

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: the loan is allotted is 20 years. What sum of annuities still remains to be paid just after payment…

A: PV of A amount paid for first 8 years = A(1-(1+r)^-8)/r PV of 3A amount paid for the next 5 years =…

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: Which amount is worth more at 14 percent, compounded annually: $1,000 in hand today or $2,000 due in…

A: 1) In hand =$1000

Q: If you contribute $1000.00 into an RRSP every six months for fifteen years and interest on the…

A: GIVEN, pmt =$1000 NPER = 15 X 2 =30 RATE = 8%2=4% PV=0

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: How much should be deposited now by Mr. Cesar Mariano in an investment paying an annual rate of 14%…

A: Compound interest is given by following formula:   A = P × (1 + r)n   Under this, interest is earned…

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: 1. Calculate the present value of $8,000 receive five years from today if your investment pay a. 6…

A: Using excel PV function

Q: $360,000 is invested in a perpetuity at an interest rate of 5.2% per annum. a. Find the monthly…

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

Q: What sum must be deposited today at 18 percent per year compounded monthly if the goal 5 years from…

A: Time value of money is one widely used by the management to evaluate the project and to determine…

Q: If $80,000 is invested in an annuity that earns 5.3%, compounded quarterly, what payments will it…

A: The total number of years is 8.5. The total number of quarters will be (8.5 × 4) = 34. Interest rate…

Q: What is the future value if the amount invested is 10,000 at 10% compounded quarterly for 5 years?…

A: Solution Given Present value 10000 Rate of interest 10% Compounding Quarterly…

Q: What will be the amount of the sum Rs 1200 for one and half year at 40 percent of interest…

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

Q: Find the present value of $10,000 if interest is paid at a rate of 9% per year, compounded…

A: The provided information are: Present value (PV) = $10,000 Interest rate (r) = 9% =0.09 Number of…

Q: What is the present value of $10,000 to be received 10 years from now if the interest rateis 5…

A: Compound interest to interest charged on amount which is sum of principal and interest of previous…

Q: What sum must be invested now to provide an amount of OMR 18,000 at the end of 15 years if interest…

A: Present Value is the current value of the future stream of cash flows or sum of money at a specified…

Q: What is the equal payment series for 8 years that is equivalent to a payment series of $15,000 at…

A: Given information:  Payment series: $15,000 Increasing amount: $1,500 Period: 10 years Interest…

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.