What is the present value of $2,000 received today,  $2,500 received at the end of each of the next ten years and $1,000 received at the end of the 11th year , assuming a required rate of return of 6%?

Q: If $20,000 is invested today and $20,000 is invested at the beginning of each of the next five years…

A: Compound Interest Formula is  Amount available at the end (A) = P (1+r/n)^nt                where P…

Q: Compute the present value of $199500 that is invested for 6 years and 9 months at 2.45% compounded…

A: Here, Future Value is $199,500 Time Period is 6 years and 9 months Time Period in Months will be:…

Q: What singlê investment made today, earning %10  annual interest, will be worth $10,000 at the end of…

A: Present Value(PV) is current worth of any amount that is to be received or paid at future point of…

Q: What is the present value of $1,150 deposited at the end of each quarter year for 12 years earning…

A: Calculation of Present Value:The present value is $38,124.16.Excel Spreadsheet:

Q: What amount must be set aside now to generate payments of $20,000 at the beginning of each year for…

A: Working note:

Q: What is the aggregate present value of $500 received at the end of each of the next three years,…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: What is the present value of $17,000 deposited at the end of each year for 23 years earning 9.5%…

A: We need to compute the present value in this question using following details : Deposit at end of…

Q: Determine the present value if $5,000 is received in the future (that is ,at the end of each…

A: Present Value: It is the present worth of the future annuity cash flow stream. Present value is…

Q: What is the present value of $2,100 to be received 14 years from now assuming a discount rate of…

A: Given information: Future value of amount is $2,100 Number of years is 14 Discount rate is 3.7% for…

Q: If money is worth 9.73% annually, what annual payment is required to raise ₱ 15,434 after 4 years?

A: It can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv], [type]) Rate The…

Q: What is the value today of receiving six annual payments of $400,000, beginning one year from now,…

A: Using the scientific calculator, we can calculate the NPV of the cash flows.  Enter the value as…

Q: Using the annuity formula find the total profit earned in the first 10 years where the company…

A: This is a case of a growing annuity. Hence we will use the formula of present value of growing…

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: Calculate the present value of the following amounts: $10,000 at the end of five years at 8%

A: In the given question we require to compute the present value.

Q: P100 is received at the end of one year, P500 at the end of two years, and P1000 at the end of three…

A: Present value is the sum of discount value of all future cash flows.

Q: An investment will provide after-tax revenue of $22,336 per year for 7 years. What is the present…

A: After tax revenue (P) of $22,336 for a period (n) of 7 years will be received. Present value annuity…

Q: What is the present value of annual payments of $2,000 for 12 years at 1 percent?

A: Present Value of Annuity is that amount which was invested by the investor today for receiving the…

Q: amount

A: Compound interest formula: Formula for calculating PV is: PV = FV/(1+i/n)^nt where FV is the future…

Q: What is the present value of $100,000 to be received after 40 years with an 18 percent discount…

A: Present value: It is the present value of future cash flows with a specified discount rate applied…

Q: Find the Future Value for $20,000 invested every year and compounded annually for 8 years at 10%

A: Excel Spreadsheet: Excel Workings:

Q: Determine when, to the nearest year, $3,000 invested at 5% per year, compounded daily, will be worth…

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

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

A: Computation of future value:Therefore, the future value is $4,461.40.

Q: er to accumulate ₱100,000 in 3 years and 6 months, how should one invest today at 9% compounded…

A: The today value which is equivalent to the future payment includes payment without  interest that…

Q: Which amount is worth more at 14 percent, compounded annually: $1,000 in hand today or $2,000 due in…

A: 1) In hand =$1000

Q: How much money was deposited 35 years ago at 10% per year interest if it is sufficient to provide a…

A: Computation:

Q: Find the value of the following, if the present value is 1,100 at 9% converted annually for 58…

A: This question is based on the concept of time value of money which says that the value of $1 is…

Q: An rrsp is now worth $229,000 after contributions of $3000 at the beginning of every six months for…

A: Worth of rrsp"Future Value" is $229,000 Paymant type is begining of the period. Semi annual…

Q: Future value) To what amount will ​$4,900 invested for 9 years at 11 percent compounded annually…

A: Future value will be reflective of the value of present investment in future after compounding it…

Q: You are investing the following amounts at the end of each of the following three years.  How much…

A: Year 1 Amount (C1) = $2,000 Year 2 Amount (C2) = $4,000 Year 3 Amount (C3) = $6,000 r = Return i.e.…

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: To what amount will ​$4,900 invested for 9 years at 10 percent compounded annually​ accumulate?

A: We need to use compounding interest formula given below to calculate amount A=P(1+i)n where A=Amount…

Q: Find the future value in five years of an investment of $103,000 made today that earns 5.50 percent…

A: Future value is the expected value of the current sum at a future date.

Q: Find the present value of the following annuities: 100 starting at time 8 and increasing by 100…

A: Present value of a future amount With future value (FV), periodic interest rate (r) and period (n),…

Q: The present value of $10,000 discounted at 5% per year and received at the end of 5 years is

A: Discounting of money is the evaluation of the present value of cash flow, which is likely to be…

Q: What is the Present Value of $500 received in eight years with an interest rate of 8 percent?

A: Given information: Cash flow or Future value is $500, Interest rate is 8%, Number of years is 8

Q: What is the future value of $800 saved each year for 10 years at 8 percent?

A: In the given question we require to calculate the future value from following details: Investment…

Q: What is the future value of $1,500 invested today at 7% interest in 6 years with interest compounded…

A: In given question we need to compute the future value of $1500 invested today for 6 years at 7%…

Q: What is the present value of 500 received at the beginning of each year for 15 years? (Assume the…

A: Given: Present value = 500 Years = 15 Discount rate = 10%

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…

Q: What is the future value of $1,100 invested today at 5% interest in 3 years with interest compounded…

A: In given question we need to compute the future value of $1100 invested today at 5% for 3 years.

Q: What APR, compounded annually, is needed to grow a present value of $250 to $500 over 6 years?

A: Annual percentage rate: It is the rate that shows total annual cost of the loan , Annual Cost…

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.