8) What lump sum should you deposit now at 1.6%, compounded continuously, to attain $750,000?

Q: The stock market data is given in the following table. Correlation Coefficients Telmex Telmex Mexico…

A: Capital Asset Pricing Model is used to calculate the required rate of return of the stock or equity…

Q: Assume that the trip will cost $26,600. What interest rate, compounded annually, must be earned to…

A: FV = PV * (1+r)nwhereFV = future value of amountPV = Present value of amountr = interest raten =…

Q: fane has $1L025 and plan to purchase a 5-year certificate of degosit KD tht y interest, conmpounded…

A:

Q: What is the present value of a cash payment of $1.2 that you will receive in 5.3 years if the…

A: STEP 1 Given a certain rate of return, present value (PV) is the current value of a future financial…

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

A:

Q: A sum of $4 million is equivalent to $4.2 million one year from now at what interest rate?

A: Future value = Present value * (1 +rate )^no. of years

Q: Suppose that you now have $4,000. How much will you have after 10 years if you leave it invested at…

A: Future value (FV) refers to the value of an investment or an asset at a specified point in the…

Q: If you put up 23,000 today in exchange for a 6 percent, 10-year annuity, what will the annual cash…

A: Invested Amount = $ 23000Interest Rate = 6% Compounded AnnuallyPeriod = 10 YearsAnnual Cash Flow = ?

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: A. What is the present value of a $500 perpetuity if the interest rate is 9%? Round your answer to…

A: Perpetuity = $500 A. Interest rate = 9% B. Interest rate =18%

Q: A company would like to have $400,000 in 6 years. How much should be invested semiannually into an…

A: Information Provided: Future value = $400,000 Period = 6 years Interest rate = 3.6% compounded…

Q: What amount must be set aside now to generate payments of $30,000 at the beginning of each year for…

A: Annual payment (P) = $30,000 Interest rate (r) = 5.52% Period (n) = 10 Years

Q: 5-1. (Power of Compounding) If you'd like to have $5,000,000 at retirement in 45 years and you…

A: Present value refers to the principal amount which is invested today. On the other hand, future…

Q: At what rate must $700 be compounded for it to grow to $1000 in 7 years?

A: Present value = $700 Future value = $1,000 Number of years (n) = 7

Q: What is the most you should pay to receive the following cash flows if your required rate of return…

A:

Q: If you put up $45,000 today in exchange for a 6.4 percent, 15-year annuity, what will the annual…

A: Annual cash flows are the regular payments or cash receipts received or paid out on an annual basis…

Q: What present value amounts to $25,000 if it is invested for 20 years at 5% compounded annually?…

A: Solution Concept The interest rate compounded annually means the interest is charged on interest and…

Q: sent value of a perpetuity with interest rate of 7.5% is $150,000. What is the annual cash flow amou

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: 7. You want to invest $5,000 for 6 years. Would you prefer to earn a 4 percent rate of return…

A: Interest rate is the rate of interest earned/paid on an investment/loan. The interest will be paid…

Q: Which will provide the largest yield on an annuity after 30 years with 6% annual interest,…

A: Given, N = 30 Years r = 6%

Q: What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is…

A: present value of a perpetuity = Annual payment/Discount rate

Q: What single payment at the beginning of year 2 is equivalent to an equal annual series of payments…

A: First payment is made at the end of Year 3 and will be made till Year 8. Hence, a total of 6 payment…

Q: a. How much must you deposit annually to accumulate this amount? b. If you decide to make a large…

A: Annual deposit required depends on the future value money and time period and interest rate of the…

Q: You deposit $2500 each year into an investment account that earns 8.5% interest for 20 years. Find…

A: Given Amount of deposit $2500. rate 8.5% for 20 years.

Q: What is the capitalized cost of $60,000 in year 0, $150,000 in year 2 and a uniform annual amount of…

A: year 0 = 60000 Year 2 = 150000 Yera 5 = 50000 per year forever.

Q: What would you be willing to pay (now) for the following yearend cash flows if your required return…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: What monthly payment into a sinking fund at 8% compounded semi –annually will be needed to raise…

A: Sinking Fund is a fund that is kept aside or borrowed to pay off a debt or a loan. It helps the…

Q: How much less is a perpetuity of $2,000 worth than an annuity due of the same amount for 30 payments…

A: Given information: Annuity : $2,000 Number of payments : 30 Rate of interest : 10%

Q: You borrow an amount and agree to pay it off with one lump sum payment of $40,000 in 6 years at 10%.…

A: If the interest is compounded annually Then amount to be borrowed can be calculated using following…

Q: What lump sum of money – deposited today – will accrue (grow) to a future value of $9,280 at 9 ¾…

A: Given: Future Value = $9,280 Annual Interest Rate  = 9.75%, compounded monthly Period in years = 2.5…

Q: Which of the following is the approximate internal rate of return for an investment that costs…

A: Concept used: PV factor will be used to know the internal rate of return of investment.

Q: How long will it take for $7500 to become $30000 at 5.5% compounded continuously?

A: Present Value = $7,500 Future Value = $30,000 Interest rate = 5.5%

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: What equal annual deposits must be made at t = 2, 3, 4, 5, and 6 in order to accumulate $25,000 at t…

A: Future value is the value of current cashflow compounded to the future date at specified rate.…

Q: Compute the PV of a perpetuity with monthly payments of $1,000, given an annual discount rate of 4%…

A: Present value refers to the current worth of a future sum of money or cash flow. It accounts for the…

Q: What’s the present value of a perpetuity that pays Php250 per year if the appropriate interest rate…

A: In finance, the time value of money concept states that the money available today is considered…

Q: What's the present value of a perpetuity

A: The present value of perpetuity is determined by dividing the amount of regular cash flow by the…

Q: If you put up $29,000 today in exchange for a 7.25 percent, 13-year annuity, what will the annual…

A: An annuity refers to a payment series that is provided in exchange for a lump sum payment. It is…

Q: (Complex present value) You would like to have $44,000 in 11 years. To accumulate this amount, you…

A: To Find: Annual deposits Lumpsum payments

Q: If you put up $51,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual…

A: Solution- We know that  PV = PMT [(1-(1+r)^-n)/r] Where PMT= Periodic payment r= rate n= number of…

Q: How low will take for a deposit of P3,105,000 to earn P515,750 if invested at the rate of 15 1/4%?

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

Q: 4. What are the present values of the following cash flows? A. $1,000 to be received in 8 years if…

A: a. PV = FV / (1 + r / n)nt Where, PV = Present value FV = Future value r = Rate of interest…