4. What's the present value of $10,000 received after 10 years appropriate interest rate is 10%, compounded annually? * a) $1,888 b) $3,855 c) $3,802 d) $852

Q: Find the present value of the given future amount. $31,000 for 9 months at 8% simple interest What…

A: The Time Value of Money states that a dollar earned today is more valuable than any time in the…

Q: How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the…

A: We have the following information: Annuity: $24,000 Rate of Interest: 5%

Q: What is the present value of a perpetuity with the annual payment of $4,000 at the annual interest…

A: The present value is used to estimate the current value of a future payment or cash flow. It entails…

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: If the current rate of interest is 10% and interest is compounded semiannually, what is the present…

A: Compound = Semiannually = 2Interest Rate = r = 10 / 2 = 5%Future Value = fv = $10,000Time = t = 7 *…

Q: What is the present value of a $90,000 annual annuity for 10 years with an additional $1,000,000…

A: The present value of investment is the sum of present value of annuity and the present value of…

Q: What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per year? O…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: What is the present value of $10,000 paid at the end of each of the next 68 years if the interest…

A: Present value of ordinary annuity may be calculated though following formula   Present Value =…

Q: You will receive $1,000 forever starting from the end of next year. The account pays 10% compounded…

A: Payment = p = $1000Interest Rate = r = 10%

Q: Calculate the Future Value of 5,000 SAR made at the end of each year for 25 years, with an interest…

A: Future value of the amount is the amount that is being deposited and amount of interest accumulated…

Q: Calculate the future value of $5,000 in a. 4 years at an interest rate of 9% per year. b. 8 years at…

A: Step 1: Step 2: Step 3: Step 4:

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: What is the present value of $2,000 that will be received after 4 years if the interest rate is 12%…

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

Q: How is the accumulated value 12,373.78 if yearly payments of 20,000 are made?

A: Solution:- When an equal amount of payment is made each period at the beginning of period, it is…

Q: (Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and…

A: Part 1: To calculate the present value, we can use the following formula:Step 1: PV = FV / (1 + r)^n…

Q: 2. An annuity pays 200 at the end of each month for 10 years. Using an annual effective interest…

A: Present value:The present value is a financial term that shows the current value of a future…

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: 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: How much that does it worth today, if the interest rate is 5%, and at the end of 7 years $10 is…

A: Present value of an investment refers to the sum amount of money that will be required today in…

Q: $11,000 annually at 5% for 10 years.

A: The present value of annuity can be calculated by using the EXCEL PV function. The same is as…

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: 2. A loan is being repaid with 25 annual payments of 300 each. With the 10th payment, the borrower…

A: The annuity of the revised or balanced amount can be determined by using the PMT formula function in…

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.