What is the present value of $1,552.90 due in 10 years at (1) a 12 percent discount rate and (2) a 6 percent rate?    Find the amount to which $500 will grow in five years under each of the following conditions: 12 percent compounded annually 12 percent compounded semiannually 12 percent compounded quarterly 12 percent compounded monthly

Q: The future value of an annuity of $1,000 each quarter for 10 years, deposited at 12 percent…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Find the present value of the following (1) a single payment of $12,000 at 6 percent for 12 years,…

A: 1. Present value = $12000 x PVIF (6%, 12 years) = $12000 x 0.49697 = $5,963.63

Q: Find the present value and future value in the given situation: Semi-annual payments of 105,000…

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: Find the present value of $10,000 payable in 10 years if the interest rate is 5 percent per year…

A: Time value of money  Time value of money is a core principle of finance according to which money is…

Q: You receive annual payments of $4,800 at the beginning of each year for 7 years. The discount rate…

A: The total value of yearly payments at a particular date in future for a given discount rate is…

Q: Find the values for the following: An initial $500 compoundedmonthlyfor 1 year at 6 percent. An…

A: Solution: An amount invested earns interest over it. So, we have, FV = PV (1+i)t where, FV = Future…

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: Find the present value of $4,600 under each of the following rates and periods: (Round your final…

A: Present value is the worth of the amount in present times that is expected to be received in future…

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: Find the AV of $3,500 at the end of 10 years at an annual effective interest rate of 4.9% for the…

A: Given Information: Future value is $3500 Annual effective rate for 3 years is 4.9% For remaining…

Q: Calculate the present value of the following annuity streams: $5,000 received each year for five…

A: In this question we need to compute the present value of the following annuity streams.

Q: The present value of $500 to be received at the end of each year for seven years at a discount rate…

A: Computation of present value:

Q: Find the amount to which $500 will grow in five years under each of the following conditions: a. 12…

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: At end of three years, how much is an initial deposit of $100 worth, assuming a compound annual rate…

A: FV is the worth of amount that will be paid or received in future. The formula for the computation…

Q: Present Value of an Annuity Determine the present value of $240,000 to be received at the end of…

A: a) Compute the present value using the present value  table:   Year Amount received Present value…

Q: Determine the present value of an annuity due of $5,000 per year for 15 years discounted back to the…

A: Using excel PV function

Q: The present value of $500 to be received at the beginning of each year for seven years ata discount…

A: The formula to compute present value annuity due is as follows:

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: Calculate the present value of $5,000 received five years from today if your investments pay: 6…

A: 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: Compute the future values of an initial P2,000 compounded annually for 10 years at 8 percent an…

A: an initial P2,000 compounded annually for 10 years at 8 percent Formula of Future Value = Present…

Q: Find the present value of $500 due in five years under each of the following conditions: 12 percent…

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

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: 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: Dind the future value of $12,308 deposited at 10% compunded quarterly for 3 years. Round your answer…

A: Given that, Present Value (PV)=$12,308 Duration(n)=3*4=12 periods Rate of interest(i)=10%/4=2.5% or…

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: Find the amount necessary to fund the given withdrawals  yearly withdrawals of $1150 for 10 years;…

A: Present value of annuity: Annuity payment * Present Annuity Factor of $1 at i% for n years. Where, i…

Q: Present Value of an Annuity Determine the present value of $110,000 to be received at the end of…

A: Formula: Present value annuity = Yearly annuity amount x Annuity factor. Multiplying annuity factor…

Q: Find the present value of $800 due in the future under each of these conditions: A.  14% nominal…

A: A. Present value = Future value / (1+ rate)^years Present value = $800 / (1+(14%/2))^(10*2) Present…

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: 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: Find the present value of $500 due in five years under each of the following conditions: a. 12…

A: The question is asking about the present value of $ 500 due after 5 year at discount rate 12% but in…

Q: What is thevpresent value of an annuity of 1,600 per year for 10 years, with the first payment…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Determine the present value of $170,000 to be received at the end of each of four years, using an…

A: Solution a:   Amount PV Factor Present Value First Year $170,000.00 0.94787 $161,138 Second…

Q: Find the future values of the following ordinary annuities: a. FV of $400 each six months for five…

A: Given: a. Annuity =PMT=$400 Time = t = 5 years Interest = r= 12% n= compounding = 2 (semiannual) To…

Q: What is the present value of an annuity due of 2,000 per year for 15 years discounted back tobthe…

A: In present value of annuity due, payment is due at the beginning of the year. We need to use formula…

Q: what is the present value of $800 to be received at the end of eight years assuming an interest rate…

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

Q: Find the accumulated value of $3,500 at the end of 10 years at an annual effective interest rate of…

A: Accumulated value =$3,500(1+0.049)3(1-0.052)7 =$3,500(1.1543)(0.6881)=$2,779.9584

Q: Calculate the present value of $5,000 received five years from today if your investments pay 6…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: The future value of a $100 investment today at 8 percent annual interest compounded semiannually for…

A: Future Value It is the value of an investment after holding the same for specific amount of years…

Q: The present value of $500 to be received each year for seven years with the first payment to occur…

A: Future value = $ 500 Discount rate = 8% P.V = ∑n = 511F.V(1 + r)n         =  $500(1 + 8%)5+$500(1 +…

Q: Find the present value

A: Time value of money (TVM) means that the amount of money received today will be worth more than…

Q: Present Value of an Annuity Determine the present value of $120,000 to be received at the end of…

A: ANSWER A) COMPUTATION OF PRESENT VALUE IN EACH  4 YEAR First year $ 114286 Second year $ 108844…

Q: what is the present value of a stream of payments that begin in year one at $5000 and increase by…

A: Information Provided: Interest rate = 8% Year 1 payment = $5000 Increment in payment = $500

Q: Find the present value of an annuity due that pays $2000 at the beginning of each quarter for the…

A: The quarterly amount is $2,000. The annual interest rate is 6.6%, compounded quarterly, So, interest…

Q: What is the future worth of each of the given series of payments?(a) $12,000 at the end of each…

A: a) The question gives the following information:

Q: Find the present value of the following annuities 800 starting at time 1, decreasing by 50 annually…

A: Annuity is a series of regular payments being made for a specified period. When the payments are at…

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.