Answered: Find present value of Rs. 260000/-…

Find present value of Rs. 260000/- required 4 years from now if compound interest is 8% p.a. ( Accumulated value is given find Principal) a. Rs.191108 b. Rs.100000 c. Rs.222357 d. Rs.260000

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: a. b. C. 11% 8% 8% Annual Rate 11 Number of Years Invested 8 16 Annually Number of Rents Involved…

A: Both future value of annuity and present value of annuity considers compounding in its calculation.…

Q: Find the missing values assuming continuously compounded interest. Initial…

Q: www. Discuss the implications of the interest rate parity for the exchange rate determination.…

A: Interest rate parity is a fundamental concept in international finance that relates interest rates…

Q: What is the present value of $1,000 to be received 4 years from today? Discount the cash flows at…

A: In Continuous compounding, The interest continually compounding, which is sometimes phrased as every…

Q: 49) Find the interest on P5000 at 7% for 3 years. C. P2,142.86 D. P1,050 A. P11,666.67 В. Р10,500…

A: 49) Principal (P) = P 5000 r = 7% n = 3 years

Q: Find the missing values assuming continuously compounded interest. Initial…

A: Given Information: Initial investment - $500 Amount after 10 years - $1,505.00

Q: 6. Find the value of P. 5,000 Years 2 3 4 į=12% compounded тonthly i=9% compounded monthly *P=?

A: Calculation of Principal amount is shown below:

Q: The future value at 5.25% interest, compounded continuously for 5 years, of the continuous income…

Q: What is the present value (PV) of $50,000 received twenty years from now, assuming the interest…

A: Answer - Present value is a way of representing the current value of future cash flows. It isalso…

Q: Calculate the future value of the following single amounts. (FV of $1. PV of $1. FVA of $1, and PVA…

A: The time value of money refers to the concept in finance which assumes that the worth of money when…

Q: 800

A: Formula to calculate the future value of ordinary annuity is: FV = C*[(1+I)^n - 1/i] Where C is the…

Q: Rate of interest = 12% 1. How much must be the present value of Php 100 if it is to be received…

A: The present value calculates the money's worth in today's terms.

Q: Use the compound interest formula A=P(1+rn)ntA=P(1+rn)nt or A=PertA=Pert to solve.

A: Compound Interest is the additional interest earned on the interest of principal or loan amount,…

Q: Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your…

A: The present value of a future sum of money is its value today at a specific rate of return. The…

Q: Find the present value. Round to the nearest cent. Amount Needed Time (Years) Interest Compounded…

A: The concept of money's time worth reveals that any sum of money can be worth more currently as…

Q: mn.3

A: The objective of the question is to calculate the present value and the compound discount of a…

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: How much invested now at an interest rate of t10% compounded annually would be just sufficient to…

A: A study that proves that the future worth of the money is lower than its current value due to…

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

A: An interest method in which current interest is computed by multiplying the interest rate by the sum…

Q: Complete the following using compound future value. (Use the Table 12.1 provided.) Note:Round your…

A: The compound future Value is calculated with the help of following formula Compound Future Value =…

Q: Find the compound interest and future value. Do not round intermediate steps. Round your answers to…

A: Principal, PV = $875 Interest rate, r = 3% Number of compounding, n = 10 The future value is…

Q: Use the following amortization chart: Selling price of home $ 96,000 Down payment $ 5,000 Rate of…

A: The total cost of interest can be referred to as the amount that is paid by the borrower more than…

Q: R150 000 is invested at a compound interest rate that is compounded quarterly. After 6 years the…

A: An annuity is a financial product or investment contract that provides a series of regular payments…

Q: Can you please show me how we get the number, 1.242381 In this sum , A = $ 2,500 P = ? Time =…

A: Below is the extended calculation for better understanding: A=P×…

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: b. If you borrow R13,000 at 8% compounded annually with the repayment schedule below, what is the…

A: Loan amount = R 13000 First payment of amount A occurs in year 2 and last payment is worth (A+600)…

Q: SA=P[1+1) and A Pe to solve the problem given. Round answers to the Use the compound interest…

A: Future value is the estimation of future cash value which is likely to be received in the future…

Q: years and nine mo pounded quarterly

A: Answer : Future value = $26,500 Interest rate = 11% Time = 2 years 9 month = 2.75 Years Compounded…

Q: Principal of 2500 OMR is invested for 3 years at rate 6.5%. Find the future value if the interest is…

A: As per time value of money concept, a sum of amount invested today will have more future value in…

Q: 4. find the periodic payemnt R required to amortize a loan of P dollars over T years with interest…

A: The periodic payment is made at regular intervals and the amount of period payment for each period…

Q: 6\ An investment of a certain amount of money was made at an interest rate of 4.75% per year…

A: To find out the principal amount, apply formula: A= P (1+r)∧n where, A = Compounded amount P =…

Q: What is the future value of $14,000 invested for one year at an interest rate of 5% p.a.?

A: Future value (FV) is the technique to calculate the future value of a current investment at some…

Q: 7. At what rate of compound interest per annum will a sum of Rs. 1200 become Rs. 1348.32 in 2 years?

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your…

A: Lets understand the basics. Present value is a value in present of the future amount. For…

Q: 2. What's the present value of $25,000 received after 5 years if the appropriate interest rate is…

A: using the PV function

Question

Find present value of Rs. 260000/- required 4 years from now if compound interest is 8% p.a. ( Accumulated value is given find Principal)

Rs.191108

Rs.100000

Rs.222357

Rs.260000

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

FIRST ASSIGNMENT: The difference between Compound Interest and Q1 Simple Interest on a certain sum of money at 10 % per annum for 3 years is Rs. 930. Find the principal if it is known that the interest is compounded annually. What would $1000 become in a saving account Q2 at 3% per year for 3 years when the interest is not compounded (simple interest)? What would the same amount become after 3 years with the same rate but compounded annually? $1200 is placed in an account at 4% Q3 compounded annually for 2 years. It is then withdrawn at the end of the two years and placed in another bank at the rate of 5% compounded annually for 4 years. What is the balance in the second account after the 4 years. An amount of $1,500 is invested for 5 years Q4 at the rates of 2% for the first two years, 5% for the third year and 6% for the fourth and fifth years all compounded Annually. What is the total amount at the end of the 5 years? A principal of $2000 is placed in a savings Q5 account at 3% per…
The amount of $10,000 is invested and will be worth $21,000 in nine years What is the cortiusly compounded nominal (annual) interest rate? Select one: O a. 8.2% O b. 7.7% C. 8.8% O d. 6.5% O e. 7.1%
Solve for the future value and compound interest given the following: Principal/Present Value: 3,000 Interest rate: 3% Time: 3 years compounded continously.
Using Table 11-2 from your text, calculate the present value (principal) and the compound interest given: A = Compound Amount = $1,250 t = Term of Investment = 6 years r = Nominal rate = 6% or 0.06 n = Interest is compounded semiannually = 2
Solve it on excel
At what simple interest rate will Rs. 1400 earn Rs. 224 in 2 years O a 8% 0b 8.23 % OC 9% Od 9.23%
Thanks
Principal of 3000 OMR is invested for 4 years at rate 2.5%. Find the future value if the interest is compounded continuously Select one: O a. 3311.438 OMR O b. 3315.512 OMR O c. 8154.845 OMR O d. None of the above
Principal of 2000 OMR is invested for 5 years at rate 3.25%. Find the future value if the interest is compounded quarterly. Select one: а. 2082.581 OMR b. 2291.819 OMR С. 2346.822 OMR d. 2351.352 OMR е. None of the above
21.Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent. CompoundAmount Term ofInvestment NominalRate (%) InterestCompounded PresentValue CompoundInterest $8,000 12 years 6 semiannually $ $
find the future value and the compound interest. principal: $1,465 Rate 0.4% compund: semi-annually time: 11 years round answers to the nearest cent
Give typing answer with explanation and conclusion Compute the future value of $1,000 compounded annually for A-10 years at 5 percent B-10 years at 7 percent C-20 years at 5 percent D why is the interest earned in part c not twice the amount earned in part a?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS