An investment promises to pay $4500 every year for 12 years. However, it does not start paying until 3 years from today. If the relevant discount rate is 6%, what is the Present Val

Q: An investment promises two payments of $610, on dates four and eight months from today. If the…

A: Lets understand the basics.Value of investment is calculated by discounting payments receivable at…

Q: Find the equivalent of present worth (t = 0) of a uniform series of $4550 for 8 years, if the…

A: Present Worth calculates the current value of future cash flows or a series of payments, typically…

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: An investment pays $2,100 per year for the first 7 years, $4,200 per year for the next 7 years, and…

A: The discount rate is 8.20% compounding quarterly. The cash flows have a periodicity of 1 year.…

Q: An investment will pay you $96,000 in six years. Assume the appropriate discount rate is 7.5 percent…

A: Compound = Daily = 365 daysFuture Value = fv = $96,000Time = t = 6 * 365 = 2190 daysDiscount rate =…

Q: What is the present value of $1,200 due in 14 years at a 5 percent interest rate and 11 percent…

A: The PV of an investment is based on the concept of the Time Value of Money which states that money…

Q: An investment product promises to pay $500 at the end of the fifth year (year 5), and the payment…

A: Perpetuity:It shows the present value of the cash flows which are payable at equal intervals…

Q: An asset is projected to generate 17 annual cash flows of $36,000 starting 5 years from today. If…

A: Present Value: It represents the current worth of the future expected cash flows. It is computed by…

Q: An investment will pay you $83,000 in five years. Assume the appropriate discount rate is 6.75…

A: The concept of time value of money will be used to solve this question.   We need to find the…

Q: An investment pays $2,100 per year for the first 4 years, $4,200 per year for the next 3 years, and…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: You invest in a project that generates fixed annual cashflows of $135 for 5 years beginning in 5…

A: In the above question we are required to find out the present value of annuity due.

Q: An investment will pay you $40,000 in 11 years. If the appropriate discount rate is 6.7 percent…

A: Present value is calculated by discounting the future cash flow using the appropriate discount rate.…

Q: You invest $10,000 into a money market account that pays interest on a semi-annual basis (e.g.,…

A: We use NPER function in excel by taking present value as 10000 and future value as 20000 and…

Q: What is the present value of a property now if its future value is predicted to be $7,500,000 at the…

A: Present value shows that the sum of money worth more today as compared to tomorrow. Numerous…

Q: The present value of $100,000 that are expected at the end of one year, at an interest rate(discount…

A: We need to use present value formula below to calculate present value of expected future…

Q: Assume you are offered a $20,000 annual payment, made quarterly (m =4). Payments begin in 10 years…

A: First Annual Payment: $20,000 (paid quarterly, for a total of $5,000 every quarter).Payment Start…

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: An investment pays $1,950 per year for the first 3 years, $3,900 per year for the next 8 years, and…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Approximately how many years will it take for $2,300 to grow to $8,172 at an annual interest rate of…

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

Q: What is the present value of aperpetuity of $50 per year if theannual interest rate is 10% andthe…

A: The objective of this question is to calculate the present value of a growing perpetuity. A…

Q: An investment pays $40 annually, forever, starting 8 years from now (at t=8). The effective annual…

A: The present value is the present worth of the amount that will be paid or received in the future.

Q: What's the future value of $10,000 after 10 years if the appropriate interest rate is 10%,…

A: Initial value (PV) = $10,000 Monthly interest rate (r) = 0.00833333333333333 (i.e. 0.10 / 12)…

Q: What single payment today would replace a payment of $1,700 in 2 years and a payment of $4,400 in 6…

A: Let the single payment today = X Payment in year 2 (P2) = $1700 (After 8 quarters) P6 = $4400 (After…

Q: How much is an asset with expected annual cashflows of $19,000 for 11 years worth today, if the…

A: Present value considers the time value of money concept. It considers the discounting factor at…

Q: An investment will pay $10,000 eighteen months from now. What purchase price will provide a rate of…

A: Maturity amount (MV) = $10,000 Interest rate (r) = 7% Period (m) = 18 months

Q: What is the present value of $6,000 paid at the end of each of the next 87 years if the interes The…

A: Present value is today equivalent value of cash flows that are to be received in the future period…

Q: An investment will pay you $43,000 in 10 years. If the appropriate discount rate is percent…

A: The present value is calculated using the following equationPresent value = Where n is the number of…

Q: What is the present value of this investment if the discount rate is 8%?

A: To calculate the present value, we need to consider the time value of money and the expected growth…

Q: An investment will pay you $45,000 in 12 years. If the appropriate discount rate is 7.2 percent…

A: Present Value A method that helps estimate the current value of money in the future is called…