Calculate the amount that must be invested at the end of each year at 9.3% compounded annually in order to accumulate $530,000 after: (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. 25 years. $ b. 30 years. $   In each case, also determine what portion of the $530,000 represents earnings on the annual investments. (Round your intermediate calculations and final answers to 2 decimal places.) a. Earnings portion $ b. Earnings portion $

Q: Future Value for Various Compounding Periods Find the amount to which $400 will grow under each of…

A: Present Value = pv = $400Interest Rate = r = 9%Time = t = 5 Years

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: Future Value = Present Value x (1 + r)^n

Q: Current Attempt in Progress the present and future values of an income stream of $6000 a year for 25…

A: Income stream = $6000 Period = 25 years Interest rate = 4% compounded continuously

Q: Calculate the future value of $5,000 earning 6% compounded quarterly (j4) for 4.5 years. Round your…

A: Future value is the value of current asset or investment at a future date. Future value is…

Q: Find the final amount of money in an account if $3,900$3,900 is deposited at 7.5%7.5% interest…

A: Calculations are done in excel, so there is no intermediate rounding. (1+i) = (1+i(2)2))^2(1+i) =…

Q: An investment of $4431.57 earns interest at 6.2% per annum compounded annually for 2 years. At that…

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

Q: Today, Thomas deposited $130,000 in a three year, 4% investment account that compounds quarterly…

A: Future value means the future worth of the money received or paid today. The future value is…

Q: 4. If $2,000 is invested in an account that earns 8.5% interest compounded annually for 5 years,…

A: Interest refers to the cost of borrowing funds or money from other parties. Interest usually is of…

Q: Assume that $1,000 is deposited today, two years from now, four years from now, six years from now,…

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: Assume that your client invests $2,700 at the end of each of the next two years. The investments…

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher…

Q: At the end of the first year, you deposited P 1,000, in the second year P 2,000, in the third year P…

A: Future value is basically obtained by compounding the present value at a given rate of interest.

Q: Compute the future value of $2,000 compounded annually for: a. 10 years at 9 percent. (Do not round…

A: Present Value = pv = $2000

Q: The four people below have the following investments. Invested Amount Interest Rate Jerry Elaine…

A: Amount = P(1 + r/100)twhere, P = Princicipal ,  r = Rate , t = Time(i) Quaterly Compounding:In case…

Q: If $8,000 is invested in a certain business at the start of the year, the investor will receive…

A: The present value of a business opportunity is the current worth of potential future cash flows or…

Q: 1. Find the compound amount and interest if: a. P 45 000 is invested at 5% compounded quarterly for…

A: Compound interest is referred as the interest which is calculated on principal amount which involves…

Q: Use Table 11-1 to calculate the compound amount (in $) on an investment of $3,500 at 10% interest,…

A: Time value of money is a financial concept which is used to analyze various investments and…

Q: _________ Determine the accumulated investment amount for A’s investment for the 10-year period…

A: The concept being illustrated in this problem is the time value of money, which is the idea that…

Q: Finance   What amount invested today would grow to $10,800 after 25 years, if the investment…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Determine the amount that must be deposited now at compound interest to provide the desired sum.…

A: A. Rate = 8% Semiannually Semi-annual interest rate = 0.08*6/12 =0.04 Amount to be received at the…

Q: Calculate the present value. (Round your answer to two decimal places.) A = $49,000, r = 7.6%…

A: Given information: Amount is $49,000 Interest rate 7.6% compounded annually Number of years is 37

Q: If you invest $40,000 at 4% interest compounded annualy, approximately how much money will be in the…

A: PV=$40,000r=0.04n=6FV=?

Q: Find the final amount of money in an account if $1,400 is deposited at 2% interest compounded weekly…

A: The concept of the time value of money states that money if invested earns interest and if left idle…

Q: Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment.…

A: In finance, the concept of time value states that money today has more purchasing power than the…

Q: a) How much will this investment be worth after 10 years? (Round your answer to the nearest cent.) $…

A: Investment Amount = $49,000 Time period = 10 years Rate of interest = 8% compounded continuously.…

Q: What is the future value of $2,000 invested at the beginning of each year for six years at 4%? a.…

A: The future worth of the investment is the amount which will be receiving in the following years that…

Q: If you invest $10,000 at 8%, how much will your investment be worth at the end of the following time…

A: Compound interest (also known as compounding interest) is the interest on a loan or deposit that is…

Q: If money is worth 1.07%, determine the present value of perpetuity of P 4.489 pavable annually, with…

A: Inputs Interest Rate = 1.07% Perpetual Amount = 4489 Payments will start at end of 5 years

Q: Complete the table to determine the balance A for P dollars invested at rater for t years,…

A: The future value refers to the amount or value after the continuous compounding of the amount with…

Q: Complete the table for an account in which interest is compounded continuously. (Round your answers…

A: This is a case of continuous compounding. We will have to convert the given rate to the EAR…

Q: To what amount will the following investment accumulate? $9,328, invested today for 31 years at 3…

A: To calculate the accumulated amount we will use the below formulaAccumulated amount = P*(1+r)nWhereP…

Q: You have $1,500 to invest today at 7% interest compounded annually. a. Find how much you will have…

A: We need to use compounding interest formula to solve this problem A=P(1+i)n  Where A= Accumulated…

Q: Assume that your client invests $2,300 at the end of each of the next four years. The investments…

A: Annual year-end payment (P) = $2,300Annual interest rate (r) = 5.3% or 0.053Number of years (n) =…

Q: Question 1 What is the future value of $650 deposited for one year earning an 10 percent interest…

A: Future Value refers to the compounded value of a single cash flow received today or multiple cash…

Q: 8 Semiannually George 21,500 7 Annually Kramer 17,500 9 Annually Required:

A: If monthly by 12, If semiannually  divide by 2 Jerry will get interested 12% quarterly which means…

Q: Determine how much is in each account on the basis of the indicated compounding after the specified…

A: Given, P is $5000 r is 3.1%

Q: Time value You have $1,500 to invest today at 8% interest compounded annually. a. Find how much you…

A: (c)the interest earned is increasing for the same amount of time.This is because change in starting…

Q: Calculate the present value of $9,000 received six years from today if your investments pay (Do not…

A: Amount = $9,000 = Future value  Time duration = 6 years  The present value of investment is computed…

Q: Find the lump sum deposted today that will yeld the same total amount as payments of $13.000 at the…

A: Present Value of Annuity: With respect to annuities, the present value of a contract is the current…

Q: a. The future value of $15,000 invested at 5 percent for 9 years. Future value b. The future value…

A: a.  Compute the future value of investment, using the equation as shown below: Future value=Present…

Q: Mark Welsch deposits $8,100 in an account that earns interest at an annual rate of 8%, compounded…

A: Compound = Quarterly = 4Present Value = pv = $8100Interest Rate = r = 8 / 4 = 2%Time = t = 5 * 4 =…

Q: 1. A man invests $4000 for 5 years at 4.2% compounded monthly. A. How much will be in the account at…

A: Amount of investment = $4000 Interest Rate =4.2% per annum Interest Rate monthly (r) = 4.2%/12 =…

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.