Calculate  time value of money : If I am to receive $10k in 5 years, given a 5% rate of return, what would be the present value of this amount? If I put $7k into the bank @ 3% interest for 10 years, what is the future value of this amount?

Q: What is the present value of $30,000 you will receive 7 years in the future, ass

A: The present value is equivalent value of money to be received today that will be equal to money to…

Q: Use the savings plan formula to answer the following question. You put $400 per month in an…

A: The time value of money is a financial concept that refers to the idea that money today is worth…

Q: Consider an investment which pays $2,000 at the end of year 1, year 2, and year 3. In year 4, the…

A: Terminal value at end of year 3 = Cash flow in year 4  / (Interest rate - growth rate) = $5000 / (7%…

Q: What is the value today of $1,500 per year, at a discount rate of 9 percent, if the first payment is…

A: The concept of money's time value reveals that any sum of money is worth more currently, than what…

Q: You are looking at an investment that promises to pay $2000 per year forever! What is the value of…

A: A cash flow that goes on forever is called a perpetuity.Here the cash flow of $2000 per year forever…

Q: Suppose you invest $3,000 today and receive $10,000 in 25 years. a. What is the internal rate of…

A: IRRIt is a capital budgeting technique of a discounted cash flow that gives a rate of return is that…

Q: 1- If you invested $10,000 in an investment account and you expect it to double in 4 years, what…

A: 1. Investment= $10000 time= 4 years

Q: How much should you invest each month in order to have $400,000 if your rate of return is 3.2%…

A: We need to use future value of the ordinary annuity formula to calculate monthly payment to get the…

Q: Calculate future value if you save $50,000 with a 6% interest rate for seven years. You must show…

A: Future value refers to the value of the current asset on some future date affected due to inflation…

Q: You buy a new piece of equipment for $11,778, and receive a cash inflow of $2,000 per year for 10…

A: Initial Investment is $11,778 Cash Inflow per year = $2,000 Time Period = 10 Years

Q: If you invest $8,300 per period for the following number of periods, how much would you have…

A: Future value, which is dependent on the assumption of compound interest or investment growth, is the…

Q: You are given $200 each year starting next year and finishing in 15 years (t = 15). If the discount…

A: We need to use present value of annuity due formula to calculate present value of cash flows stream.…

Q: Present Value You will require $700 in 5 years. If you earn 5% interst on your funds, how much will…

A: The computation is as follows: Hence the present value is $548.47.

Q: What is the future value of a 6%, 10-year ordinary annuity that pays $200 each year?  If this were…

A: The future value of annuity is calculated using the formula below:

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: Use the present value and future value tables to answer the following questions. A. If you would…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: You are expecting to receive a payment of $5969 in 2 years and $9869 in 6 years. If the interest…

A: One of the useful concept used in finance is time value of money. It says that a dollar amount…

Q: Calculate the present value of this infinite future payment of $100

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: You will recieve $4000 three years from now. The discount rate is 10 percent.  c) What is the value…

A: We need use present value formula to solve this problem. Present Value =Future value/(1+r)n Where…

Q: What return per year would you need to receive in order to double your money in 8 years?

A: Assume the present value = $100 Future value =Present value × 2 = $100 × 2= $200 Time period = 8…

Q: You are looking to invest your savings and want to earn a 10% annualized return. You can choose from…

A: The idea of present value, in finance, is to determine the worth of future cash flows or a series of…

Q: An example of how to calculate net present value is done using the following. Imagine you have been…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

Q: You decide to set aside $120 a month for your future. Assuming a real interest rate of 7.5%, how…

A: The question is based on the concept of future value calculation of annuity payment.  Formula as,…

Q: Wells Fargo offers a new savings product: You make the following payments over the next 5 years and…

A: The FV of an investment refers to the cumulative worth of the investment's cash flows at a future…