Calculate the annual equivalent value at the end of each year at i=17% per year?

Q: 5) How many years are required for P15k to increase to P20k if invested at 12% per year compounded…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask…

Q: Calculate the perpetual equivalent annual cost (years 1 to ∞) of $825,000 now and $1,000,000, 8…

A: Cost now (C0) = $ 825,000 Cost after 8 years (C8) = $ 1,000,000 Period (n) = 8 Years Interest rate…

Q: What is the effective annual interest rate when 12% per year is compounded quarterly? 0.13 or 0.23?

A: In this we have to calculate the effective interest rate annually.

Q: What effective rate is the equivalent to 15% compounded annually?

A: Effective annual Interest can be computed as follows. EAR = (1 + i/n)n – 1 Here i = Annual rate of…

Q: Find the present value of the given future amount. $70,093 for 324 days at 6.4% simple interest.…

A: Intreast rate for 324 Days =6.4×324÷360=5.76% Future value =70,093

Q: What is the final value of $20,000 if left in an account that pays 10% interest per annum for 30…

A: Using excel FV function

Q: Use the RSTUV method to obtain the solution. If P dollars are invested at r percent compounded…

A: Given, A = P*(1+r)^2

Q: Approximately, what is the value of PG (present worth of arithmetic gradient) if G=185, n=7 years,…

A: gradient = 185 time period = 5 interest rate = 7.5% below is the given formula to calculate present…

Q: What is the present value of a $100 payment due in 10 years at 1%?  At 10%?  At 15%?

A: Present Value = Future Value / (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: What sum must be deposited today at 18 percent per year compounded monthly if the goal 5 years from…

A: Time value of money is one widely used by the management to evaluate the project and to determine…

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.