What is the present value, when interest rates are 10 percent, of a $75 payment made every year forever?

Q: How much money will be in a bank account at the end of 15 years if $100 is deposi ted today and the…

A: Following details are given in the question : Deposit today (Present value) = $100 Time period = 15…

Q: What is the present value of a $300 annuity payment over 5 years if interest rates are 8 percent?

A: Details given are : Annual cashflow = $300 time period = 5 years Interest rate = 8% We require to…

Q: What's the present value, when interest rates are 8.0 percent, of a $160 payment made every year…

A: The present value is the today’s value related to the future money at a given rate of return. It is…

Q: What is the future value of $1000 in 10 years if the interest is compounded at 6% annually ?

A: Future Value  Future value  is the worth of any asset or any sum of money at a future date when such…

Q: Consider a $5,000 deposit earning 10 percent interest per year for 10 years. What is the future…

A: The value of the cash flow after a particular time period with the addition of the interest amount…

Q: What's the present value of a $500 annuity payment over four years if interest rates are 8 percent?

A: Given: Annuity payment (P) : $500 Interest rate (Annual) (r) : 8% Time period (n) : 4 years

Q: What is the present value of $9,300 received 10 years from now using a 7% interest or discount rate,…

A: Given details are : Future value = $9300 Time period = 10 years Interest rate = 7% Compounding…

Q: What is the present worth of annually payments ( 2000 $ ) if the first payment will deposit after…

A: All deposits will happen at the start of each year. So, the first payment will be at start of 6th…

Q: Suppose that an annuity will provide for 20 annual payments of 1240 dollars, with the first payment…

A: Total number of payments "N" is 20 Annual payments "PMT" is $1,240 Interest rate is 8.8% convertible…

Q: What's the present value, when interest rates are 8.0 percent, of a $70 payment made every year…

A: Interest % = 8% Annual Payment = 70 Present Value of Payments made in perpetuity = Annual Payment /…

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

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: What's the present value, when interest rates are 8.5 percent, of a $195 payment made every year…

A: Calculation of present value:- Present value is $ 2,294.12   EXPLANATION:- Annual payment(given)…

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

A: Ordinary Annuity =$2000 Years(n) = 4 Interest rate(r) = 6% Future Value = Ordinary annuity * […

Q: What is the future value of $100 quarterly payments for 5 years assuming a 15% interest rate…

A: Convert 15% compounded monthly to its equivalent interest rate for quarterly interval. Here, 'R'…

Q: Explain Step by Step What is the present value of an annuity that pays $X per month for 10 years,…

A: PVA refers to the amount that will be acceptable today if the series of payments is made on future…

Q: What is the present value of a $90 annual annuity for 10 years with an additional $1000 received at…

A: Solution:- When an equal amount is paid each period, it is called annuity. The terminal value…

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: What’s the future value

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: For an ordinary annuity with five annual payments of $100 and a 10% interest rate, how many years…

A: 1. How many years will the first payment earn interest? Since, it is an ordinary annuity , the first…

Q: What is the future value of a 3-year, $100 ordinary annuity if the annual interest rate is 10%?

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: What amount will be paid at the beginning of every month for 10 years if the present value is 20O,…

A: The payment flow which continues for a definite time period and terminates after lapse of time…

Q: assume that you pay 10000 on a yearly basis for 10 years, how much will pay after ten years if the…

A: Given:Amount paid on yearly basis=10000Time period=10yearsInterest rate=5% compounded yearly

Q: What simple interest rate is equivalent to 5% compounded quarterly if money is invested for 10…

A: Concept. 1. Simple interest formula. SI = P × N × R…

Q: What is the present value of $11,800 received 20 years from now using a 13% interest or discount…

A: In the given question we needs to calculate the present value from following details: Future value =…

Q: if the annual rate is 10% and the annual infinity (forever) payment is $1000, what is the present…

A: Perpetuity refers to the series of periodic payments that have no ending i.e. investors or…

Q: What is the future value of an $800 annuity payment over 15 years if the interest rates are 6…

A: In this question we require to calculate the future value of annuity. Annuity amount (PMT) = $800…

Q: What is the future value of a 3-year ordinary annuity of $100 if the appropriate interest rate is 10…

A: There are two types of annuities: Annuity due - Equal payments made at the beginning of an equal…

Q: What is the present value of £100 to be received every year forever, starting next year if the…

A: Cash inflow in year 1 = £100 Interest rate = 20%

Q: What is the present value of a $400 annuity payment over 5 years if interest rates are 6 percent?

A: given, A = $400 r=6% n=5 years

Q: What is the present value of a $700 annuity payment over six years if interest rates are 10 percent?

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: If you deposited $10,000 each year for 10 years and the interest rate is 5.00%, what is the value at…

A: INFORMATION: RATE 5% YEARS 10 PMT (MONTHLY DEPOSIT) 10000 PRESENT VALUE $0

Q: What is the future value of an annuity with annual cashflows of $4,000 for 38 years? The interest…

A: Future value of an annuity is the future value of stream of same annual cash flows which takes place…

Q: What is the present value of a perpetuity of $17 per year growing at 2 percent per year with a…

A: Present Value:  The present value (PV) is the present sum of a series of fixed payments. The series…

Q: An annuity pays $15 per year for 60 years. What is the future value of this annuity at the end of…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years?…

A: A perpetuity is payment for ever An annuity is payment at the end of the period for a limited period…

Q: What is the future value of a $1,000 annuity payment over 4 years if the interest rates are 8…

A: Given details are: Annuity payment (PMT) = $1000 Time period (n) = 4 years Interest rate (I/Y) = 8%…

Q: What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the…

A: The perpetuity is the annuity that happens for a perpetual period. In other words, it is the equal…

Q: What is the present value of a $1,100 payment made every year forever when interest rates are 4.5…

A: In this question we need to compute the present value of $1100 payment made every year for forever…

Q: Suppose you were to receive $1000 at the end of 10 years. if your opportunity rate is 10, what is…

A: Discounting is a way to compute the PV of receivable amount by considering appropriate rate or PVF.…

Q: present value

A: SOLUTION:- Present Value= Future value/(1+i)n   WHERE: Future Value =$150,000 i= 11%(discount rate)…

Q: For an ordinary annuity with a five annual payments of $100 and a 10% interest rate, how many years…

A: Ordinary Annuity involves fixed and equal annual payments at the end of consecutive periods over a…

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: What is the PV of a perpetuity paying $6 each month, beginning next month, if the monthly interest…

A: Present value of a Perpetuity is equal to the PMT / Annuity value divided by the rate of interest…

Q: What is the present value of $10,000 to be received 10 years from now if the interest rateis 5…

A: Compound interest to interest charged on amount which is sum of principal and interest of previous…