What is the present value of a security that will pay P290,000 in 20 years if securities of equal risk pay 5% annually? 5. What is the future value of a 5%, 5-year ordinary annuity that pays P8,000 each year? If this was an annuity due, what would be its future value?

Q: What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to…

A: Present value of annuity payment - it means present value of future annual equal payment made to a…

Q: What is the present value of $30,000 you will receive 7 years in the future, ass

A: The present value is equivalent value of money to be received today that will be equal to money to…

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 present value of $14,000 to be received in one year if the interest rate is 8% p.a.? a.…

A: Using excel PV function

Q: 1. An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4,…

A: 1)Calculate the present and future value of an investment: Excel workings:

Q: four-year ordinary annuity has a present value of P10,000. If the interest rate is 5% per annum, how…

A: Present value =10000 interest rate =5% Period =4 years  Present value FACTOR =1-(1.05)-4/0.05…

Q: What’s the present value of a perpetuity that pays $1,000 per year beginning1 year from now, if the…

A: Computation:

Q: 1.If you put up $40,000 today in exchange for a 7.65 per cent, 20-year annuity, what will the annual…

A: Because you have posted multiple questions, we will answer the first question only.For the remaining…

Q: If you put 45,000 today in exchange for a 6.4 percent, 15-year annuity, what will the annual cash…

A: Present Value = 45,000 Rate = 6.4% Time period = 15 ye

Q: s the future value (FV) of $72,000 in 25 years, assuming the interest rate is 5.5% per year?

A: The worth of a present asset at a future date based on an expected rate of growth is known as future…

Q: ou are offered an annuity that will pay R17,000 per year for 7 years (the first payment will be made…

A: Given: Annuity amount = R17,000 Year = 7 Discount rate = 11%

Q: What is the current value of a security that pays $165,500 per year for 10 years if similar…

A: The present value of all cash flows can be used to calculate the current value of an investment.

Q: What is the future value of an ordinary annuity of $1,000 per year for 9 years compounded at 10…

A: Given: Annual cash flow (A)=$1000 Number of years (n) =9 years Interest rate(r) = 10% = 0.10

Q: C)What is the present value of a seven-year PKR 100,000 annuity if the first Rs. 100,000 payment is…

A: The annuity discussed here is a form of deferred annuity.

Q: What is the present value of a security that promises to pay you $5,000 in 20 years?  Assume that…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: How much should an investor be willing to pay for an investment product that offers to pay 25,000…

A: Here we will have to use the concept of time value of money and find the present value of the…

Q: You purchase a three-month discount security (e.g., a Treasury bill or commercial paper) for $0.9878…

A: Purchase price of 3-month discount security = $98780 Face Value = $100,000

Q: What is the current value of a security that pays $165,500 per year for 10 years if similar…

A: The current value of security can be calculated as present value of all cash flows

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's the future value of the same annuity due?

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: the future value of an ordinary annuity

A: 1. FV of Ordinary Annuity​=C×(1+i)n−1​/i where: C=Cashflow per period i= interest rate n= number…

Q: If the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000…

A: The question is based on the concept of future value calculation of annuity payment, by use of…

Q: Suppose that an annuity will provide for 20 annual payments of 1440 dollars, with the first payment…

A: Total number of annual payments is 20 Annual payments $1440 First payment coming in 11 years from…

Q: What is the future value of a 5%, 5-year ordinary annuity that pays P8,000 each year? If this was an…

A:

Q: How much should an investor be willing to pay for an investment product that offers to pay 25,000…

A: Annuity refers to the equal amount of payments/deposits at equal intervals for a definite period at…

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: If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years? How…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: An insurance company is offering to sell an annuity for $20,000 cash. In return the firm will…

A: given, present value of annuity = $20,000 first payment =$1100

Q: 1. If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years?

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: Suppose you are given a choice of the following two securities: (a) an annuity that pays $10,000 at…

A: PRESENT VALUE OF ANNUITY (PVA): PVA=A×1-11+RNR WHERE, A=ANNUITY R=RATE OF INTEREST N=NUMBER OF YEARS…

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: Assume that you are offered an annuity that pays $100 at the end of each year for10 years. You could…

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: A security pays $800 every 8 years forever. The appropriate discount rate is 2% (EAR). What is the…

A: The rate of return used for discounting future cash flows down to their current value is a discount…

Q: a) GCB has offered to grant you GHC50,000 loan with an annual interest of 24% compounded monthly to…

A: NOTE: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: 3. Your investment will pay $500 at the beginning of each of first 2 years, $100 at the end of…

A: Present value can be calculated by using this equation PV =FV/(1+r)n and  FV =PV(1+r)n where PV…

Q: Suppose you are going to receive $13,000 per year for 7 years. The appropriate interest rate is 8…

A: Present value of annuity is the present value of all the stream of cash flows that occur in future.…

Q: What is the current value of a security that pays P165,500 per year for 10 years if similar…

A: Annuity means where regular payment is made at the end of regular period and full amount with…

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

A: Given: PMT = Payment = $60,000 NPER = Number of years = 10 Interest rate = 4%

Q: t. How much would be the total value of your investment at the maturity date?

A: Future value = Present value (1 + rate)^periods Future value = 1000 (1 + 0.035)^5 Future value =…

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.