What is the present value of a s400 perpetuity if the interest rate is 8%? If interest rates doubled to 16%, what would its present value be? Round your answers to the nearest cent. Present value at 8%: Present value at 16%:s

Q: What is the present value of an investment that pays $103 at the end of each of years 1, 2, and 3?…

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

Q: If the future value of an ordinary, 4-year annuity is $1,000 and interest rates are 6 percent, what…

A: Formula to compute future value of annuity due:

Q: What is the present value of a $400 perpetuity if the interest rate is 8%? If interest rates doubled…

A: Given data; deposit amount = $400 interest rate ( r1) = 8% interest rate (r2) = 16%

Q: What is the future value of an ordinary annuity of $2,000 for 4 years, if interest rates are 6…

A: Given: Interest rate = 6% Future value of ordinary annuity = $2000

Q: the present value of perpetuity that pays 500,000 per year if the appropriate interest rate is 10%…

A: Present value of perpetuity = Annual amount / interest rate

Q: What is the present value of an annuity due that promises $20,000 per year for 20 years if the…

A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…

Q: What is the difference in present value between a perpetuity that pays $500 per year and an ordinary…

A: Annual payment (A) = $500 n = 23 years for ordinary annuity r = 7%

Q: A. What is the present value of a $500 perpetuity if the interest rate is 9%? Round your answer to…

A: Perpetuity = $500 A. Interest rate = 9% B. Interest rate =18%

Q: Find the future value of the following ordinary annuities. Payments are made and interest is…

A: Given, The payments $4000 Interest rate is 10% Term is 20 years

Q: If P12,000 is the present value of P12,600 due at the end of 9 months, then the annual simple…

A: Simple Discount refers to the discount in which the amount of interest is deducted. This is usually…

Q: What's the future value of an 8%, 5-year ordinary annuity that pays $100 each year? If this was an…

A: Annual payment=100Interest rate=8%Number of years =5

Q: A. What's the future value of a 10%, 5-year ordinary annuity that pays $100 each year? Round your…

A: A. Future value is $610.51.

Q: What is the present value of perpetuity of $100 per year if the appropriate discount rate is 7…

A: Time value of money-It is based on the concept that money earned today is worth more than similar…

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 a regular $1,000 60-month annuity, if r is 6% APR compounded monthly?

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: What's the future value of a 12%, 5-year ordinary annuity that pays $300 each year? If this was an…

A: Here, To Find: Future value of an ordinary annuity =? Future value of an annuity due =?

Q: if the annual rate is 5% and the annual infinity (forever) payment is $200, what is the present…

A: A perpetuity is a security that pays for an infinite amount of time.The present value of a…

Q: n annuity pays $1000 per year for 10 years. Inflation is 6 percent per year. ) If the real MARR is 8…

A: Real interest rate is reduced due to inflation but the actual rate is much larger.

Q: How much would be the FUTURE VALUE of a ₱20,000 single payment with annual rate of 12% to be…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: a. What is the present value of 15 annual payments of $100, with the first payment one year from…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The present value of an annuity stream of $100 per year is $920 when valued at a 10% rate. By…

A: The annuity in which payments that are made at the beginning of each period, rather than the end, it…

Q: hat is the present value of a perpetuity paying $1500 each year, if the effective annual interest…

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: Suppose you are going to receive $17,500 per year for five years. The appropriate interest rate is…

A:

Q: Under what interest rates would you prefer a perpetuity that pays $2 million a year to a one- time…

A: This question require us to compute the interest rate in case of a perpetuity.

Q: ay you $99,000 in 15 years. If the appropriate discount rate is 6.7 percent compounded quarterly,…

A: The given problem can be solved using PV and EFFECT function in excel. PV function computes present…

Q: What is the present value of a perpetuity that pays $250 per year if the appropriate interest rate…

A: In the given question we are given five options regarding present value of perpetuity and we need to…

Q: What single payment today would replace a payment of $1,700 in 2 years and a payment of $4,400 in 6…

A: Let the single payment today = X Payment in year 2 (P2) = $1700 (After 8 quarters) P6 = $4400 (After…

Q: What is the future value of an 8%, 5-year ordinary annuity that pays $350 each year? Do not round…

A: Interest rate (r) = 8% Annual payment (P) = $ 350 Number of annual payments (n) = 5

Q: What is the annual interest rate earned by a 33-day T-bill with a maturity value of $1,000 that…

A: solution Given Maturity value 1000 Present value 996.16 Duration of t bill 33 day…

Q: You may purchase an annuity that will pay you ¥300,000 in income per year starting one year from now…

A: Annual income (P)= ¥300,000 Annual interest rate (R) = 4% Period (N) = 22 Years

Q: What is the present value of a $1,000 60-month annuity due, if r is 6% APR compounded monthly?

A: The time value of money is applied in the case of calculation for the present value of the annuity.…

Q: What is the present value of an ordinary annuity of P47,000 each year for eight years assuming a…

A: Solution Concept Ordinary annuity means the annuity which is received at the end of each period…

Q: An investment will pay ¥13,400 in five years.  What is the present value of this investment today…

A: Present value is calculated by discounting the future cash flow at the discount rate.   Present…

Q: What is the effective interest rate for a payment plan of 30 equal payments of $89.30 per month,…

A: First step is to calculate the annual percentage rate by using Excel function rate. Nper = Number of…

Q: What’s the present valu

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: At a point in time, the asked (discount yield) of a 10,000 T-Bill is o.9%. How much is the price of…

A: Treasury bill is just like a promissory note which is issued by government. These bills are short…

Q: What is the future value of an annuity due that promises $60,000 per year for 10 years if the…

A: Annuity is regular payment to be made to investor. There are two types of annuities 1. Ordinary…

Q: What is the present value of a $800 perpetuity if the interest rate is 8%? If interest rates doubled…

A: Perpetuity means that the steams of cash flow will be everlasting (forever continues).  The formula…

Q: If $43,000 is invested now, which of the following value is closest to the equivalent future dollars…

A: Time value It tells money received today has more worth than that of receiving the same value later…

Q: What is the present value of an ordinary annuity of $400 each month for eight years, assuming an…

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

Q: g What is the füfüre compounded at 10 percent? What would be the future value if it were an an-…

A: Answer g: Information Provided; Term = 7 years Rate = 10% Payment = $1000

Q: What is the present value of a perpetuity that pays annual, end-of-year payments of $850 every year?…

A: End of Year payments =850 Nominal interest rate = 8% Present value of perpetuity=Equal cash flow…

Q: The present value of an ordinary annuity is P21,150.68. How long will equal payments of P2,000 at…

A: Using excel NPER function to calculate the time

Q: What is the present value of a $200 payment in one year when the discount rate is 7 percent?

A: We require to compute the present value in this question from following details: Future value = $200…

Q: What is the present value annuity due of RM2,000 with a 10 percent discount rate for 10 years?…

A: using the PV function in excel

Q: What is the present value of a $700 perpetuity if the interest rate is 8%? If interest rates doubled…

A: The below expression can be used to calculate present value of a perpetuity: