Answered: What's the present value of $1,515…

Business

Finance

What's the present value of $1,515 discounted back 5 years if the appropriate interest rate is 6.6%

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

See similar textbooks

Related questions

Q: Assume that you are going to receive $290,000 in 10 years. The current market rate of interest is…

A: Formula: Present value = 1 / ( 1 + r )N R = Rate of interest N = Number of years

Q: Find the present value of $400 due in the future under each of these conditions: a. 6% nominal rate,…

Q: At a certain interest rate compounded semiannually, ₱5,000 will amount to ₱20,000 after 10 years.…

A: Time value of money: Time value of money refers to the concept that the value of money available at…

Q: If money is worth 3 ½% compounded monthly, find the compound discount if 12,200 is discounted for 2…

A: Here, Amount is 12,200 Time Period is 2 years and 11 months Time Period in Months will be: =24…

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

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…

Q: Compute the present value of $4,800 paid in two years using the following discount rates: 8 percent…

A: Future Value = 4800 Time Period = 2 years Discount rate in first year = 8% Discount rate in second…

Q: A borrower can borrow $10 million at a fixed-rate loan at 7.5% for six years. After some…

Q: A demand loan for $5409 08 with interest at 4.2% compounded annualy is repaid after 6 years, 8…

A: Compound interest also called interest on interest. It is the addition of interest in the principal…

Q: A promissory note calling for payments of $1,100 at the end of each year for the next 13 years is…

A: The rate of return is the percentage return we will get after adjusting the time value of money…

Q: The present value of $10,000 to be received five years from today, assuming a discount rate of 9%…

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

Q: 1. Determine the present value of $1,500 to be received at the end of 10 years if the compound rate…

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

Q: What's the present value of $18,544.86 discounted back 5 years if the appropriate interest rate is…

A: Note : We are choosing here the nearest answer provided in the question ,else correct round off…

Q: Assume that you are going to receive $690,000 in 10 years. The current market rate of interest is…

A: a. Present value of this amount to be received after 10 years = Amount to be received x Present…

Q: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?…

A: Future Value = PV × ( 1 + r )n where, PV = Present Value = $700 r = Interest Rate = 4% n = time…

Q: You wish to deposit an amount now that will accumulate to $100,000 in 10 years. How much less would…

A: Using excel PV function

Q: What is the present value of RM4,500 to be received 10 years from today if the discount rate is 6…

A: Using PV function in excel

Q: What is the present value of $500 to be received 10.5 years from today when the annual discount rate…

A: Note : 1. As per the guidelines only first question will be answered. Kindly post the remaining…

Q: A 7 year, $7,500 promissory note bearing interest at 6% compounded monthly was sold after 2 years.…

A: Face Value of Promissory note = $7500 Interest rate = 6% Interest rate monthly = 6%/12 = 0.50%…

Q: What's the present value of $4,000 discounted back 5 years if the appropriate interest rate is 4.5%,…

A: Discounting is a technique through which present value of the future amount is calculated. It is…

Q: Find the present value of OMR7, 000 to be receive one year from now, assuming a 3 percent annual…

A: Present value is the current value of a future stream of income or cash flows. It is very easy and…

Q: sh to deposit an amount now that will accumulate to $200,000 in 25 years. How much more would you…

A: The extra amount to be deposited can be calculated as follows :

Q: Find the present value of $800 due in the future under each of the following conditions. Do not…

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

Q: Find the present value of $10,000 received at the start of every year for 20 years if the interest…

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

Q: How would we compute the present discounted value of payments of $8,000 received three years in the…

A: Correct answer is option (b) 8,000/((1.05)3) + 10,000/((1.05)4)

Q: 1. Assume that $1,000 is to be received 30 years from today. Compare the present values obtained…

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

Q: Find the present value of $500 due in the future under each of the following conditions. Do not…

A: Present Value is the current value of all the cash flows which is to be received in the future which…

Q: P=? $3,000 $3,000 $1,500 $1,500 4= 10% 2 =8% iz = 10% = 15% 15 = 10% 6 = 8% 1 2 3 Years 4 Click the…

A: Present value is the discounted value of future cash flows. It is the today's value of cash flows…

Q: What's the future value of $1,500 after 5 years if the appropriate interest rate is 5.6%, compounded…

A: Future value = Present value * (1+r)^n R is the rate here it will be 5.6/2 = 2.8% per semi annual…

Q: When compounded bi-monthly P15000 becomes P22300 after 5 years. What is the interest rate? NOTE:…

A: Present value is also referred to as the present discounted value. Basically, it is the sum of the…

Q: A borrower can borrow $10 million for six years. Assume the current LIBOR rate is 7%. After some…

A: As the question is incomplete, based on options given calculating amount of interest paid under…

Q: What's the present value of $12,000 discounted 5 years if the appropriate interest rate is 4.5%,…

A: The value today can be calculated with the help of present value function

Q: Your uncle lends you $2,000 less $100 (interest at 5 percent), and you receive $1,900. Use the APR…

A: Given: Future value (FV) = $2000 Present value (PV) = $19000

Q: Present value of amounts due Assume that you are going to receive $ 50,000 in 10 years. The…

A: Present value is a concept in the time value of money that states that cash flows in the future are…

Q: What is the value today of $1,600 per year, at a discount rate of 10 percent, if the first payment…

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

Q: What is the present value of $30,000 in 27 years discounted at 9 percent interest rate

A: Introduction Present Value: Represents the value/ identifies today's worth for the value…

Q: Present Value of Amounts Due Tommy John is going to receive $520,000 in three years. The current…

A: The concept of the time value of money (TVM) states that money accessible now is valued more than…

Q: Present value) What is the present value of the following future amounts? a. $900 to be…

A: we need to use present value formula given below present value =future value(1+discount rate)number…

Q: A lender has offered to finance the purchase at the following terms: 60% Loan-to-Value 5%…

A: As the name suggests, cash on cash return is the ratio that shows how much cash return an investor…

Q: What's the present value of $14,000 discounted back 5 years if the appropriate interest rate is…

A: Future Value = 14,000 Semi Annual Compounding Time Period (N) = 10 semi annual periods Interest Rate…

Q: What's the future value of $1,300 after 5 years if the appropriate interest rate is 6%, compounded…

A: Interest means the extra amount which we received because of investment made and will be paid in…

Q: What is the value today of receiving $4,000 at the end of two years, assuming an interest rate of 4%…

A: Present value of an amount can be calculated as: = Future Value / (1 + i)^n Where, i = rate of…

Q: You put $1,000 into a savings account today that offers a 5% APR with semi-annual compounding (i.e.,…

A: Effective annualized rate informs the rate effectively (considering the impact of compounding…

Question

What's the present value of $1,515 discounted back 5 years if the appropriate interest rate is 6.6%, compounded monthly?

Group of answer choices

$1,090

$979

$1,033

$1,132

$928

Expert Solution

Step 1

Present value is the current value of future sum of money. It is the value of future money currently in hand.

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Present Values Krista Kellman has an opportunity to purchase a government security that will pay $200,000 in 5 years. Required: Note: Round answers to two decimal places. 1. Calculate what Krista would pay for the security if the appropriate interest (discount) rate is 6% compounded annually. 2. Calculate what Krista would pay for the security if the appropriate interest (discount) rate is 10% compounded annually. 3. Calculate what Krista would pay for the security if the appropriate interest (discount) rate is 6% compounded semiannually.
Calculating and comparing add-on and simple interest loans. Eli Nelson is borrowing 10,000 for five years at 7 percent. Payments, which are made on a monthly basis, are determined using the add-on method. a. How much total interest will Eli pay on the loan if it is held for the full five-year term? b. What are Elis monthly payments? c. How much higher are the monthly payments under the add-on method than under the simple interest method?
Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?
Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual interest rate of 6%, and payable in four months. How much interest will Marathon Peanuts owe at the end of four months? A. $2,600 B. $7,800 C. $137,800 D. $132,600
Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions Kristen Quinn makes equal deposits of $500 semiannually for 4 years. Required: What is the future value at 8%? (Note: Round answers to two decimal places.)
If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%