3.20 Calculate the future worth (in year 11) of the following income and expenses, if the interest rate is 8% per year. Year Income, $ Expense, $ 12,000 3000 1-6 800 200 7-11 900 200

Q: What is the initial value of an investment that has a value of $6245.30 after 6 years at a 5.5%…

A: The initial value can be calculated using the Present Value formula.

Q: Calculate the future value of $5000 if it is invested at an interest rate of 16% compounded…

A: The worth of an investment or asset on a certain date in the future is referred to as its "future…

Q: 2.43 You have borrowed $28,000 at an interest rate of 12% compounded annually. Equal payments will…

A: The tenure of the loan means the duration for which loan has been taken. If loan tenure is more than…

Q: The present worth of the cash flow with payments in the second through seventh year for amount of…

A: Present value of cash flow in nth year [PV of CFn] = CF x (1 + r)-n Where,  CF = cash flow of the…

Q: Find the FV of $1,000 invested to earn 12% after 6 years. Round your answer to the nearest cent.…

A: Present Value = $1,000 Interest Rate = 12% Time Period = 6 Years

Q: What is the future value of $11,000 invested for one year at an interest rate of 6% p.a.? a. $17000…

A: given  interest rate = 6% PV = 11000

Q: Approximately, what interest rate would you need to earn in order to turn $5000 into $10000 over 8…

A: Interest rate is the rate that a lender charges on the amount provided to the borrower for the total…

Q: What is the present value (PV) of $40, 000 received ten years from now; assuming the interest rate…

A: The objective of this question is to calculate the present value of a future sum of money. In this…

Q: What is the future value of $11,000 invested for one year at an interest rate of 6% p.a.? a. $17000…

A: Given, PV = 11000 Rate = 6%

Q: What is the present value of $44,100 to be received in 10 years; i = 7%. Present value %24

A: Present value = Future Value / (1+i)n Where i = Interest or discount rate n = Number of years

Q: Complete the following using compound future value. (Use the Table 12.1 provided.) Note:Round your…

A: The compound future Value is calculated with the help of following formula  Compound Future Value =…

Q: 5. What amount should be invested now at 6% per year, compounded annually, to generate a retirement…

A: Present value will be the maximum amount that can be saved or invested now to generate a steady…

Q: At what annual interest rate must $232,000 be invested so that it will grow to be $452,000 in 14…

A: Present value (PV) = $232000 Future value (FV) = $452000 Period (n) = 14 Years

Q: Find the future worth in year 10 of $50,000 in year 0 and amounts increasing by 15% per year through…

A: Future worth: It is the future value of the present amount compounded at a rate of interest over a…

Q: Find the present value of each future amount 6.3% 5)$15, 402 for 120 day si money earns 5:

A: As per the concept of time value of money the worth of money changes with passage of time. This is…

Q: Determine the future value of the following single amounts:                    Invested Amount…

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

Q: 8. What is the equivalent worth in year 5 of the following series of income and disbursements, if…

A: Equivalent worth is the value based on the time value of money which is equivalent to all expenses…

Q: 29. You invested $10,000 at the end of each year for 20 years at a compound interest rate of 5%…

A: Future value of money is the amount of deposit made and amount of interest accumulated over the…

Q: 17. What is the present value of a $5,500 perpetuity starting in a year's time, then growing by 4%…

A: Option (A) $55,000Explanation:Given information, Cash flow at the end of year 1 (CF1) = $5,500Growth…

Q: Find the sum of equalannual payments equalto the sum of the following payments, with an interest…

A: equivalent annual rate = e0.10 - 1 = 10.51709% Present value of the cash flows = 5842.85

Q: What is the present value (PV) of $40, 000 received ten years from now; assuming the interest rate…

A: The objective of this question is to calculate the present value of a future sum of money. In this…

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: Find the future value of an initial $100 compounded annually for 7 years at 3%. $100.21 O $122.99…

A: Interest is the amount charged on debt or loan taken. It can be simple interest or compound…

Q: What is the future value of $14,000 invested for one year at an interest rate of 5% p.a.?

A: Future value (FV) is the technique to calculate the future value of a current investment at some…

Q: Present value = $100; Interest rate = 5%; Number of years 11 (assume annual compounding). What is…

A: Calculating future values aids in evaluating the long-term advantages and disadvantages of financial…

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: Using the following partial table of present value of $1 at compound interest, the present value of…

A: Present value is the present worth of the amount which is to be received in future by considering…

Q: What will $248,000 grow to be in 12 years if it is invested today in an account with an annual…

A: Future Value = P(1+r/n)^ntWhere P = Principal = $248,000R = Rate on interest = 15%N = number of…

Q: How much will $7500 in savings today be worth 5 years from now if it earns 6%, compounded monthly?…

A: Compound = Monthly = 12Present Value = pv = $7500Time = t = 5 * 12 = 60Interest Rate = r = 6 / 12 =…

Q: At what annual interest rate must $232,000 be invested so that it will grow to be $417,000 in 12…

A: Present value = $232000 Future value = $417000 Period = 12 Years

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.