Answered: What is the present value of a $1,500…

What is the present value of a $1,500 payment made in nine years when the discount rate is 8 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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: Dan borrowed $1802.00 today and is to repay the loan in two equal payments. The first payment is in…

A: Let the equal instalment be = X Now the PV of both X should be euqal to the loan amount PV =…

Q: Suppose your opportunity cost (interest rate/year) is 11% compounded annually. How much must you…

A: Hi there! Thank you for the question. Post has multiple questions. As per company guidelines expert…

Q: Find the present value of an annuity if $2,200.00 is paid to you at the end of every 2 months for 3…

A: Present value is the current worth of future payments to be received from the investment. Formulas:…

Q: What is the present value of a $350 payment in one year when the discount rate is 8 percent? (Round…

A: Persent value is currant value of future investment. Persent value is inverse to future value. It…

Q: You deposit $ 6,957 in an account that pays 1 % simple interest. How much do you have after 12…

A: Deposit amount (P) = $ 6,957 Interest rate (r) = 1% Period (t) = 12 Years

Q: What's the present value of a $840 annuity payment over four years if interest rates are 8 percent?…

A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…

Q: A 10-year annuity pays $1,725 per month, and payments are made at the end of each month. The…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: At what nominal rate of interest, convertible monthly, is $16,000 the present value of $290.10 paid…

A: Given: Future value = $16,000 Present value = $290.10 Years = 6 years Periods = 6*12 = 72

Q: What’s the present value of a $900 annuity payment over five years if interest rates are 8 percent?…

A: The present value of annuity is calculated by present value of all future payments from an annuity…

Q: Two payments of $5,200 are to be received four and eight months from now. b. If the rate of interest…

A: Economic value is the measurement of the benefit derived from a good or service to an individual or…

Q: How much money should be invested in an account that earns 9 percent interest, compounded monthly,…

A: Excel Spreadsheet:

Q: The annual discount rate is 7.70%. a. What is the present value of a perpetuity that pays 2,000 at…

A: Perpetuity is a situation where a stream of Cashflow payments continues indefinitely or is an…

Q: An amount of $4,000 is deposited into an account for which the interest rate is 5% per annum.…

A: Given Rate = 5% Time = 7years

Q: Compute the value in 35 years of a $1,500 deposit earning 8 percent per year. (Do not round…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: At what nominal rate of interest, convertible monthly, is $16,000 the present value of $290.10paid…

A: Annuity Due refers to a series of fixed payment which are done at beginning of period whereas…

Q: What is the present value of a $500 payment made in four years when the discount rate is 8 percent?

A: We need to calculate the present value from below given details in this question: Future value =…

Q: At what effective rate, a single payment of $ 1,500.00 today is equivalent to two payments of $…

A: An annuity is a series of equivalent periodic cash flows that contain a fixed amount occurring at…

Q: If 5 deposits of $600 each are made into an account at the end of years 9, 10, 11, 12, and 13, what…

A: Deposit in year 9,10,11,12 and 13 = $ 600 Future value period = Year 25 Annual interest rate = 12%

Q: A payment of $35,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: Let the equal payments = X The payments are to be made in year 2, 4 and 7. Interest rate = 4.5%…

Q: Compute the present value of an $1.200 payment made in nine years when the discount rate is 11…

A: Present Value Present value is the present worth of any sum of a money to be received in the future…

Q: Suppose a savings account pays 7% annual interest with interest compounded daily (assume there are…

A: Daily compounding Nominal rate= 7% Number of compounding periods = 365 Deposit = 2578 N = 3285 days…

Q: How much money should be invested in an account that earns 9% interest, compounded monthly, in order…

A: Computation of the money that has to be invested:Hence, the money that has to be invested is…

Q: ompute the present value of $10,000 to be received at the end of each year for the next 7 years if…

A: Present value is the equivalent today that is going to be received in the future time based on time…

Q: Suppose you deposit $ 1296 today and your account will accumulate to $ 5637 in 9 years. What is the…

A: Maturity Amount, A = $ 5637Principal deposited, P = $ 1,296Time period, T = 9 years

Q: What is the present value of a $1,500 payment made in nine years when the discount rate is 8…

A: In this question we are required to compute the present value from following details: Annual payment…

Q: If $8000 is deposited at the end of each half year in an account that earns 6.2% compounded…

A: The future value of a cash flow is the future worth of a cash flow at a certain rate of interest and…

Q: What is the present value of a $1,250 payment made in six years when the discount rate is 8 percent?…

A: To calculate the present value we will use the below formula Present value = FV/(1+r)n Where FV -…

Q: You wish to make 4 equal annual deposits into a savings account such that at the time of your last…

Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…

A: GIVEN, PRESENT VALUE=$1000 future value=$1276.30 n=5

Q: A perpetuity-due has annual payments. The initial payment is 326.53 and each subsequent payment is…

A: Perpetuity means infinite no. of payments which are same in size or may be grow with constant rate.…

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: An annuity with a cash value of $14,000 earns 7% compounded semi-annually. End-of-period semi-annual…

A: An annuity is defined as the fixed payment made at the beginning or the end of the period for a…

Q: What is the future value of a $830 annuity payment over six years if interest rates are 10 percent?…

A: Annual payment (P) = $830 Interest rate (r) = 10% Period (n) = 6 Years

Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…

A: The future value of cash flow is the future worth of a cash flow at a certain rate of interest and…

Q: What is the present value of an annual payment of $9,500 discounted back 8 years at an annual rate…

A: given, A=$9500 r=3% n=8

Q: If money is woth 5 1/2% compounded annually, what single payment now equivalent to 45 annual…

A: Deferred annuity is a type of annuity in which the payment of annuity series began after a specified…

Q: What's the present value of a $660 annuity payment over five years if interest rates are 9 percent?…

A: Annuity payment (P) = $660 Interest rate (r) = 9% Period (n) = 5 Years

Q: What is the present value of a $750 payment made in three years when the discount rate is 5 percent?

A: In this question we need to compute the present value of $750 payment in three years.

Q: f you owe $47,000 payable at the end of five years, what amount should your creditor accept in…

A: The question gives the following information:

Q: A payment of $23,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: Given That: P.V=$23000 Payment is done in 3 equal payment Rate of interest= 4.25% Duration= 6 years…

Q: You took out a $20,000 loan from the bank at an interest rate of 8% compounded annually with the…

A: as Loan repayment schedule starts from the 3rd year and ends at the 15th year, we will first find…

Q: What is the future value of $5,500 in 17 years at an APR of 8.4 percent compounded semiannually? (Do…

A: Here, Present Value (PV) is $5,500 Annual Percentage Rate (r) is 8.4% Time Period (n) is 17 years…

Q: What is the present value of a $1,000 payment made in five years when the discount rate is 10…

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

Q: Find i (the rate per period) and n (the number of periods) for the following annuity. Monthly…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: Determine the interest rate earned on a $2,300 deposit when $2,600 is paid back in one year. (Round…

A: Future value = Present value * (1+interest )^n N is no. of years.

Q: If you were to borrow $8,400 over five years at 0.14 compounded monthly, what would be your monthly…

A: Loan is a contract between lender and borrower where lender provide funds to borrower for definite…

Question

What is the present value of a $1,500 payment made in nine years when the discount rate is 8 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 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

Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?
You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
What is the present value of a $1,250 payment made in six years when the discount rate is 8 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
What is the present value of a $360 payment in one year when the discount rate is 9 percent? (Round your answer to 2 decimal places
What is the present value of $2,225 per year, at a discount rate of 9 percent, if the first payment is received 8 years from now and the last payment is received 23 years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
If you deposit $700 in a bank account that earns 5 percent per year, how much total interest will you have earned after the third year? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Total Interest =
1000 dollars is deposited into an account at the beginning of the year and the value at the end of five years is 1276.30. If the discount was converted monthly, the nominal discount rate is? (That is, d(12) = )
What’s the present value of a $900 annuity payment over five years if interest rates are 8 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)