CO An annui y w ith a cash value of F $ 9, goo pays $ 31o at the begining ef every montho The investment earns 5% Compounded How many payments cwi 1l be paid What is the size of the final payments ?

Q: You make a payment of of $ 24 with Apr of 5.2 % After 90 years what will you have in the account…

A: given, pmt = $24 apr = 5.2% y=90 n =12

Q: Find the shown annual payments if the future worth ( F) equal 892371 $

A: Given information: Future worth : $892,371 Interest rate : 8% Number of years : 5 Annual payments…

Q: What is the present value of $14,000 to be received in one year if the interest rate is 8% p.a.? a.…

A: Using excel PV function

Q: An investor receives $1,050 in 6 months in return for an investment of $1,000 now. What is the…

A: Compound = ContinuousFuture Value = fv = $1050Time = t = 6 / 12 = 0.5 YearsPresent Value = pv =…

Q: WhenyoubuyabondforPhP2,000anditpays3%annualinterestfor10years.Howmuchinterest payments would you…

A: The interest payment for a bond is known as coupon payment. The coupon payment is received by the…

Q: If you invest $5,000 three years from now, how much will be in h 15 f if 10% d d ll ? the account 15…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: Find the FV of $1,000 invested to earn 12% after 6 years. Round your answer to the nearest cent.…

A: Present Value = $1,000 Interest Rate = 12% Time Period = 6 Years

Q: Assume S00 000 is avialable for investment and MARR=t0% per year if atemative A would eam 35% per…

A: Here, Available funds for investment = $90,000 MARR = 16% Investment A return = 35% Investment A…

Q: Suppose that you deposit $200 at the end of each month into an account paying an expected annual…

A: given, monthly compounding N    =10 x 12 = 120I    =3%12PV   =0PMT =200   FV    = need to find

Q: Investment A will earn 0.5% per month.  Investment B will earn 6% per year.  Which investment will…

A: Investment A compounded monthly and Invested B is compounded annually. Therefore effective interest…

Q: 1. Find the future value of a one time investment of $8,000 if the account compounds quarterly at…

A: Future value:Future value (FV) is the idea of how much an investment will be valued at a certain…

Q: Calculate the future value of an investment if the annual interest rate is 9%, number of payments is…

A: Details given in the question are as follows: Annual payment = $1000 Time period (number of periods)…

Q: What sum of money will grow to $23000.00 in seven years at 9.612% compounded monthly? FV = $ IY =…

A: We can use the formula for compound interest to solve this problem: A = P(1 + r/n)^(nt) where: A =…

Q: Find the present value of the future amount. Assume 365 days in a year. Round to the nearest cent.…

A: Present value=Future value /  [ 1 + (Interest rate x Number of years)]

Q: How long will it take 51387.00 to accumulate to $1627.00 at 6% p.a. compounded semi-annually? Sue…

A: Given that, Present Value (PV)=$1,387 Future Value (FV)=$1,627 Interest rate (i)=6%/2=3% or 0.03…

Q: How long will it take $1387.00 to accumulate to $1627.00 at 6% p.a compounded semi-annually? Sute…

A: Compounding is a technique through which FV of present amount is calculated by using appropriate…

Q: Compute the PV of a perpetuity with monthly payments of $1,000, given an annual discount rate of 4%…

A: Present value refers to the current worth of a future sum of money or cash flow. It accounts for the…

Q: Calculate the time it will take for an investment of $25 000, invested at a simple interest rate of…

A: Simple interest is interest earned on the 'initial' principal amount invested at the simple interest…

Q: a. Find the FV of $1,000 invested to earn 10% after 5 years. Round your answer to the nearest cent.…

A: We can determine the FV of an amount by using the time value of money formula as below.

Q: Suppose you buy a S10,000 face value T-bill maturing in one month for $9,800, what's your effective…

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: b. What is the investment's FV at rates of 0%, 4%, and 30% after 0, 1, 2, 3, 4, and 5 years? Round…

A: We can determine the FV using the formula below:

Q: An investment pays $2,000 every third year for 45 years (a total of 15 payments). Your opportunity…

A: Option C. $7317.16

Q: What is the returnon an investment that costs $1,000 and is soldafter 1 year for $1,060?

A: Given information: Investment cost (purchase price) is $1,000 Sale price is $1,060

Q: An investment will pay $100 at the end of each of the next 3 yrs, $200 at the end of yr 4, $300 at…

A: Given information: Cash inflow for next three years is $100 Cash flow for year 4 is $200 Cash flow…

Q: How much money shouold Johnny pleced time daposit ina bonk that 4% annually that he will have…

A: F = A (1 + r/n ) nt Where F = future value of investment             A = principal              r=…

Q: John takes out a loan for $9600 at 10% interest compounded monthly and is making payments of $136 a…

A: Time value of money is a financial concept which is used to calculate the value of money in present…

Q: How much money should be deposited today if 9% compounding is paid semiannually and the goal is for…

A: Given: Interest rate (I)= 9% Years(n) = 8 Compounding periods(m) = 2 Future value (Pnm)= $100,000

Q: Gerson Joseph has ₱ 300,000.00 to invest at 1.12% compounded quarterly. How much is the additional…

A: Investment (P) = P 300,000 Interest rate = 1.12% Quarterly interest rate (r) = 1.12%/4 = 0.28%…

Q: How long will it take an investment to triple if it earns: o. 9.4% compounded annually? (Do not…

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

Q: For 8 – 10. How long will a principal of P25,000 of Mark will earn an amount of P3,000 when invested…

A: Principal (P) = P 25000 Interest = P 3000 Interest rate = 3% compounded monthly

Q: 8. Jamie wants to buy a computer that will cost $1200 one year from now. How much should he deposit…

A: The concept of time value of money will be used here. Money deposited today will grow in future due…

Q: If the interest payments are done semi-annually, what is the initial investment to be so that 6…

A: Semi-annual interest rate (r) = 26%/2 = 13% = 0.13 Number of semi-annual periods = 6 years x 2 = 12…

Q: $17,000 is invested at 10% per year, in approximately how many years will the investment double? OA.…

A: Present value is a financial concept that refers to the value of a future cash flow in terms of…

Q: How long will it take to double $1,000 if invested at 12.25% using annual compounding? а. 7.2 years…

A: This question require us to calculate the time period required to make the investment of $1000…

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.