What is the future value of GH¢ 1,200 a year for 40 years at 8 percent interest? Assume annual compounding. #randomized O A. GH¢ 301,115 B. GH¢ 306,492 OC. GH¢ 310,868 D. GH¢ 342,908 O E. GH¢ 347,267

What is the future value of GH¢ 1,200 a year for 40 years at 8 percent interest? Assume annual compounding. #randomized O A. GH¢ 301,115 B. GH¢ 306,492 OC. GH¢ 310,868 D. GH¢ 342,908 O E. GH¢ 347,267

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 9PROB

See similar textbooks

Related questions

Q: You are paying $1,500 monthly for 10 years with an the interest rate of 12% compounded continuously,…

A: Future Value Annuity amount (PMT)= $1,500 monthly= $18,000 yearly Time period (n)= 10 years Interest…

Q: Investment If $5000 is invested for 6 years atinterest rate r (as a decimal), compounded annually,…

A: future value formula: Future value=present value×1+rateyears

Q: ind the future values of these ordinary annuities. Compounding occurs once a year. Do not round…

A: a) Future value = Annuity * [(1 + rate)^periods - 1] / rate Future value = 1000 * [(1 + 0.06)^8 - 1]…

Q: 1. What's the future value of $1,500 after 5 years if the appropriate interes rate is 6%, compounded…

A: using the Fv function

Q: future

A: Formula for compound interest is: A = P[(1+r/n)^nt] Where A is the future value, P is the principal…

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

Q: At a certain interest rate compounded semiannually, ₱5,000 will amount to ₱20,000 after 10 years.…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

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: Which alternative in the table below should be selected when the MARR = 7% per year? The life of…

A: Internal rate of return is the discount rate at which the present value of the future cash flow and…

Q: The present value of $60,000 to be received in one year, at 6% compounded annually, is _____…

A: Option d is the correct option.

Q: Find the present value of $500 duein the future under each of these conditions:a. 12% nominal rate,…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: The present value of $75,000 to be received in two years, at 12% compounded annually, is _____…

A: Present Value: Present value is calculated with the consideration of time value of money. Present…

Q: What's the future value of $1.500 after 5 years if the appropriate interest rate is 6%, compounded…

A: Using excel FV function

Q: What's the future value of $15,000 after 11 years if the appropriate interest rate is 10.75%,…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

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: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?…

A: Future Value = PV × ( 1 + r )n where, PV = Present Value = $700 r = Interest Rate = 4% n = time…

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

A: Present value: It implies to the value of future cash flows in today's time by using a specified…

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

A: Compute the future value:The future value if the interest is compounded continuously is $29,676.98…

Q: i need the process What is the present value of $1,485,120.00 given an interest rate of 4.5%…

A: Look I understand you need to know the process I will explain you Given information in this question…

Q: Suppose S500 is invested at 4% compounded quarterly. (a) How long will it take the investament to…

A: The present value is that amount without which we cannot obtain the future value. The future value,…

Q: An investment of $4917.75 earns interest at 3.6% per annum compounded monthly for 2 years. At that…

A: Accumulated value is the future value of a current lump-sum amount which is invested at a constant…

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: What is the future value of $2,575 per year for 17 years at an interest rate of 6.69 percent?…

A: Future value of annuity = P x [(1 + i)n - 1]/i P = Annual payment i = interest rate n = number of…

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: What's the future value of $20,000 after 8 years if the appropriate interest rate is 5.75%,…

A: The formula to compute future value at compounded interest as follows:

Q: What is the present value (PV) of $300,000 received seven years from now, assuming the interest rate…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: Which one of the following represents the highest effective interest rate per year? Select one:…

A: Daily compounded interest means that interest is accumulated on a daily basis and is calculated by…

Q: Use the compound interest formulas A = P(1 + r/n)nt and A = Pert to solve (Round answers to the…

A: Compound interest: Compound interest is the accumulation of interest to the principal amount of a…

Q: opose an investment opportunity is advertising an interest rate of iR per year compounded…

A: In this we need to find the effective interest rate and amount of deposit required today.

Q: The present value of $41,000 to be received in two years, at 12% compounded annually, is _____…

A: Presents value is the value of the investment in the present market. Future value = $41,000 r = 12%…

Q: Present value of amounts due Assume that you are going to receive $ 50,000 in 10 years. The…

A: Present value is a concept in the time value of money that states that cash flows in the future are…

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 future worth of P8500 deposited at the end of every month for 3 years if the interest is…

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

Q: The present value of $42,000 to be received in two years, at 12% compounded annually, is (rounded to…

A: Answer:- correct Option is c. $33,482.

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

A: Present Value represents the present worth of the investment. This can be computed by using Excel…

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: What is the future value of $3,078 invested for 8 years at 6 percent compounded annually? Multiple…

A: Time value of money (TVM) concept refers to the method used to measure the value of money at…

Q: What is the present value (PV) of $300,000 received five years from now, assuming the interest rate…

A: Given: Future value (FV) = $300,000 Rate of interest (r) = 9% = 0.09 Time period (n) = 5

Q: What is the present value of $600 you expect to receive in 3 years if the interest rate is 12%…

A: given, fv = $600 n = 3 years r = 12%

Q: What's the future value of $1,300 after 5 years if the appropriate interest rate is 6%, compounded…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: Use the continuous compound interest formula to find the indicated value. A= $16,687; P=$10,400; t=…

A: In continuous compounding the invested amount earns interest on a continuous basis and hence the…

Q: What is the value today of receiving $4,000 at the end of two years, assuming an interest rate of 4%…

A: Present value of an amount can be calculated as: = Future Value / (1 + i)^n Where, i = rate of…

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…

Q: Find the interest if P50,000 is invested at 7% compounded monthly for 5 years and 6 months. O A.…

A: Solution: Monthly interest rate = 7%/12 = 0.583333% Nos of monthly periods = 5.6*12 = 66 months…

Concept explainers

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.

Question

What is the future value
of GH¢ 1,200 a year for 40
years at 8 percent
interest? Assume annual
compounding.
#randomized
O A. GH¢ 301,115
B. GH¢ 306,492
O C. GH¢ 310,868
OD. GH¢ 342,908
O E. GH¢ 347,267

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 AS per the question

VIEW

Step 2 Solution

VIEW

Step 3 Correct Answer

VIEW

Trending now

This is a popular solution!

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, finance and related others by exploring similar questions and additional content below.

Similar questions

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%
Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?
How much willan investment of GH< 20.000 be worth in 10 years at an interest rate of 10%% per annum payable semi-annually? A) GH¢ 54,304.89 B) GH 67,980.98 C) GH¢ 53,065.95 D) GH¢ 69,603.44 E) GH¢ 65,056.59
with end of the month contributions of 251.33 a tsfa is expected to pass 90000 in value after 15 years and 5 months. determine the nominal rate and effective rates of return used in the projection. Round to the nearest 0.01. Must show work
Compute the simple interest INT for the specified length of time and the future value FV at the end of that time (in dollars). Round all answers to the nearest cent. $12,300 is invested for 9 months at 7% per year. INT = $ ___ FV = $ __
What will be the future value of $5 000 invested for six years at 8% per annum compounded quarterly? Select one: a. $6 532.81 b. $7 923.37 c. $7 934.37 d. $8 042.19
What will be the future value of $5 000 invested for six years at 8% per annum compounded annually? Select one: a. $7 543.46 b. $7 923.37 c. $7 934.37 d. $6 532.81
An investment opportunity requires a payment of $910 for 12 years, starting a year from today. If your required rate of return is 6.5 percent, what is the value of the investment to you today? (Round factor values to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.)
A company epects the cost of ts product parts to increase by 8℅ per year begnning 4 years from now theough to year 10 The cost in years 1-3 is AED 600 and the interest rate is 12% per year 1) Calculate the total present worth in year-02) Calculate the future worth in year-10 option a AED 21361.88b AED 4032.74C AED 3786.61d AED 4400. 66e AED 12524. 89f AED 6878.06
Indicate whether the given statements is true (T) or false (F): "For a specified value of F at EOY N, P at time zero will be larger for r = 10% per year thanit will be for r = 10% per year, compounded monthly".