1. What's the future value of $1,500 after 5 years if the appropriate interes rate is 6%, compounded annually? * O a) $2,620 O b) $5,016 c) $2,007 O d) $1,500 e) None of the above

Q: What is the present value of a 5-year annuity of $3,800 with the first payment to be received 3…

A: Annuity amount = $3800 Period of annuity = 5 years Payment to be received in = 3 years Interest rate…

Q: Calculate what $860 would grow to at 7% per year compounded daily for 9 years. (Use the Table 12.2)…

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

Q: What present value amounts to $15,000 if it is invested for 20 years at 6% compounded annually?…

A:

Q: A perpetuity-due with annual payments of 100 has a duration of 26.88 years at an annual effective…

A: Annual payment = 100 Duration of perpetuity due = 26.88 i = Interest rate

Q: Find the future values of these ordinary annuities. Compounding occurs once a year. Round your…

A: Formulas:

Q: What is the present value (PV) of $50,000 received twenty years from now, assuming the  interest…

A: Answer -  Present value is a  way of representing the current value of future cash flows. It isalso…

Q: 4. What's the present value of $10,000 received after 10 years if the appropriate interest rate is…

A: Introduction Present Value: Present value is referred to as identifying the value of cash flows or…

Q: What is the future value of $6700 a year for 30 years at 10.5 percent interest, compounded annually?…

A: For the calculation of the future value, we will use the below formula   Future value = P*(1+r)n…

Q: What amount would you have if you deposited $2,500 a year for 25 years at 8 percent (compounded…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: What's the future value of $15,000 after  11 years if the appropriate interest rate is 10.75%,…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: What's the present value of a perpetuity

A: Perpetuity means a series of equal infinite cashflows, that occur at end of each period with…

Q: Question 1 What is the future value of $650 deposited for one year earning an 10 percent interest…

A: Future Value refers to the compounded value of a single cash flow received today or multiple cash…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: PMT = 58 Period = 13 years  Nominal rate of interest = 7.23% Additional amount = 1000

Q: 11. Compute the current value of a 5-year $7,000 annuity starting in 5 years' time; assuming…

A: The objective of this question is to calculate the present value of an annuity that starts in the…

Q: Which comes closest to the future value of $875 to be received at the end of 7 years, if the amount…

A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…

Q: (Present value of an annuity due) Determine the present value of an annuity due of $2,000 per year…

A: Present value of annuity due= Pmt*((1-(1+r)^-n)/r) *(1+r)

Q: 2. What's the present value of $25,000 received after 5 years if the appropriate interest rate is…

A: using the PV function

Q: What's the future value of $20,000 after  8 years if the appropriate interest rate is 5.75%,…

A: The formula to compute future value at compounded interest as follows:

Q: Ques 1 and 2

A: THANK YOU

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.