An investment of 500 will increase to 4000 at the end of 20 years. Find the resent values of three payments of 5000 each occurring at the end of 20, 40,

Q: What about will be accumulated on this account in 50 years if initial investment is 500,000. 9%…

A: PV = $500,000r=9% or 0.09 (as a decimal)n=50 years

Q: What present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually?…

A: Present Value = Future value / (1+r)^n Where, r = rate of interest i.e. 8% n = no. of years i.e. 20…

Q: Six annual regular payments of £7,250 are paid into a fund that pays interest of 3.4% per annum.…

A: In stock market, the change in the market rate of interest can be seen. With the change in interest…

Q: An investment will return $125 at the end of each month for 5 years and then $250 at the end of each…

A: Value at the end of 5 years of $250 received for next 3 years every month, can be calculated as…

Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…

A: To calculate the present value we will use the below formula   Present value = FV/[1+(r/m)]n*m Where…

Q: What is the accumulated value of the 5000 TL investment at the end of each year with 3% interest…

A: The accumulated value is calculated as future value of annuity

Q: A firm is scheduled to receive payment of $68,000 in 2 years.  What is the present value of this…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: An investment project provides cash inflows of $1325 per year for eight yea payback period if the…

A: Year cash flow 1                            1                       1,325.00 2…

Q: A $90,000 investment is made at t=0, and returns are realized over a 5-year period. A return of…

A: The present value of money refers to the concept that a dollar received in the future is worth less…

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: An investment promises two payments of 650 on dates two and four months from today if the required…

A: The present value is the current value of future cash flows. Investors and money lenders use this…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: To calculate the present value we will use the below formula   Present value = FV/(1-d)n Where FV -…

Q: A firm is scheduled to receive payment of $32,000 in 2 years.  What is the present value of this…

A: Present value of future cash flow can be calculated as follows: = Future Value/ (1 + rate)^number of…

Q: If $17,500 is invested at an interest rate of 10% per year, find the value of the investment at the…

A: Present Value (PV)= $17,500 Interest Rate (r)= 10% per year Time period (n)= 5 years Future Value at…

Q: If the initial investment is $200,000, what would be the nominal annual rate of interest compounded…

A: Interest is the cost of borrowing the money.

Q: ay you $99,000 in 15 years. If the appropriate discount rate is 6.7 percent compounded quarterly,…

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

Q: A project has estimated annual net cash flows of $7,500 for ten years and is estimated to cost…

A: Net present value(NPV) is the difference between present value of cash inflows and initial…

Q: You are told that if you invest $10,900 per year for 12 years (all payments made at the end of each…

A: Annual Payment = pmt = $10.900Time = nper = 12 YearsFuture Value = fv = $670,000Present Value = pv =…

Q: If the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000…

A: The question is based on the concept of future value calculation of annuity payment, by use of…

Q: If 2400 dollars is invested in an account for 10 years. Find the value of the investment at the end…

A: Future value(FV) is the value of initial investments at a future date after compounding it with a…

Q: Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: What is the present worth of an annual payment of P5, 000 at the end of each year for 10 years at 10…

A: The present value of annuity will be calculated at the end of year 4 since annuity begins from Year…

Q: A project has estimated annual net cash flows of $11,250 for four years and is estimated to cost…

A: a. Net present value of the projet = Present value of Annual net cash flows - Initial cost = Annual…

Q: If 32300 dollars is invested at an interest rate of 10 percent per year, compounded semiannually,…

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

Q: A project has estimated annual net cash flows of $147,000 for 4 years and is estimated to cost…

A: For a given project, NPV and the present value index have to be found. The initial investment is…

Q: An investment of $50,000 is proposed at an interest rate of 8%. What is the future amount in 10…

A: Simple Interest Future Value = Present Value * (1+rt) Where,  r = rate of interest  t = no. of years…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.