Find the percent gain of P5000 at the rate of 11% compounded continuously after 10 years. Percent gain is computed as the ratio of the difference of Future worth and Present worth with respect to Present worth times 100% O 200% O 100% O 150% 50%

Find the percent gain of P5000 at the rate of 11% compounded continuously after 10 years. Percent gain is computed as the ratio of the difference of Future worth and Present worth with respect to Present worth times 100% O 200% O 100% O 150% 50%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 2QTD

See similar textbooks

Related questions

Q: Find the present and future value of an income stream of $6000 per year for a period of 10 years if…

A: Present value (PV), also referred to as present discounted value, signifies the current value of a…

Q: Find the value of x that makes the equivalent annual worth in years 1 through 10 equal to $800 per…

A: Calculation of values of x and 2x:Answer:The value of x is 4,915.75

Q: 1. two sources of income with equal present valuec C at time 0 provide annual payents in arrears…

A: It is a financial valuation method that calculates the present value of expected future cash flows…

Q: Use the formula PV = FV × (1/(1+i)n) to find the present value of $9,600 received three years from…

A: Present Value refers to a concept that states the discounted value or say value at today's time of…

Q: For each of the following, compute the future value: Present value years interest rate future value…

A: Future value is the value, which is referred to as the value of current asset with an interest as…

Q: Calculate the future worth (in year 11) of the following income and expenses, if the interest rate…

A: Computation of net amount:

Q: Find the equivalent future worth of the following payments. Use 6% interest rate compounded…

A: Interest Rate = 6% Compounded Annually Month Month (in Years) = Month / 12 Cash Flow 0 0.00…

Q: Find the future value of the given present value. Use 360 days per year for your calculation. The…

A: Future value is calculated by compounding the present value.

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: Use present value tables to compute the present value of $450,000 to be paid in 10 years, with an…

A: Future value of any include the amount that is being deposited and amount of interest that is…

Q: What is the present value of $2,000 received today, $2,500 received at the end of each of the next…

A: Present value of cashflow for any year = Cashflow for that year/(1+ discount rate)^time Cashflow for…

Q: Compute the number of years (t) if future value (FV) = $5575, present value (FV) = $1812, and…

A: Future Value (FV) is a financial term used to describe the value of an asset at a future date, given…

Q: What is the present value, using the present value formula. Achieve $225,500 at 8.65% compounded…

A: The time is 8 years, 155 days. This can also be said as (8 + 155/365)years

Q: 3. Determine the future values if OMR 5,000 is invested in each of the following situations: a. 5…

A: Future value can be defined as the worth of money at a future date, computed in accordance with the…

Q: Compute the future value of $2,500 continuously compounded for 5 years at an APR of 11 percent. b.…

A: a.Present value, P = $2,500Interest rate, r = 11%Period, n = 5 yearsThe future value is

Q: Evaluate the net present value of following streams of income: a. $1000 per year at an interest rate…

A: Present Value of Perpetuity = Perpetual Income / Interest Rate

Q: How much would $9,00o t8 be received at the end of 50 years be worth today if the rered rate of…

Q: 3. Determine the future values if OMR5,000 is invested in each of the following situations: a. 5…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: Find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The…

A: The formula used for calculating G is:

Q: Find the value of the following, if the present value is 1,100 at 9% converted annually for 58…

A: This question is based on the concept of time value of money which says that the value of $1 is…

Q: Future value) To what amount will $4,900 invested for 9 years at 11 percent compounded annually…

A: Future value will be reflective of the value of present investment in future after compounding it…

Q: Find the present value of the following future amount. $500,000 at 9% compounded annually for 25…

A: The present value can be calculated by discounting the future amount.

Q: What is the present value of the accumulated amount of P7.5 million at ½%, m=4 for 2 years?

A: Discounting the future cashflows will provide Present value.

Q: Calculating Present Value For each of the following, compute the present value: Present Value Years…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Complete the following using present value. Amount $6,600, Time 10 years, Rate 2%, Compounded…

A: Calculation of period used: Answer: Period used is 20. Calculation of period used:

Q: (a) find and (b) interpret the present value that will generate the given future value $3758 at 11…

A: The Present Value is the current value of a future amount i.e., it is the amount to be invested…

Q: How long will it take money to double itself if invested at 10% compounded annually? O a. 7.72 YEARS…

A: Solution: Let it will take n years to take money to double at 10% compounded annually Given interest…

Concept explainers

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.

Question

Find the percent gain of P5000 at the rate of 11% compounded
continuously after 10 years. Percent gain is computed as the ratio of the
difference of Future worth and Present worth with respect to Present
worth times 100%
200%
100%
150%
50%

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Assume that you start with a $1000 dollar invested in each ETF at the end of 2003. Calculate the evolution of your inves value over time in the yellow highlighted area in columns K and L. The terminal Value of your investment rounded to cents to the following IWM? EEM?
What is the paypack period if initial investemnet is - $3700.00 Cash Flow for seven years as follow: year Year 1 -$612.50 year 2 $-105.00 year 3 $105.00 year 4 $612.50 year 5 $1225.00 year 6 $2100.00 year 7 $3937.50 What is the Net Present Value with a dicount rate of 10.0?
Use the formula PV = FV × (1/(1+i)n) to find the present value of $9,600 received three years from now at 10 percent interest.
How much would $9,00o ts be received at the end of 50 years be worth today if the rered rate of return is 7.5%? $285.02 $153.89 $223.82 O $242.00 $693.65
4) What is the future worth (in year 10), of the following: with an interest rate of 10% Year Income Expense 0 1-7 8 2500 1600 11000 1500 1200 7200
(Future value) To what amount will $4,900 invested for 9 years at 11 percent compounded annually accumulate? $4,900 invested for 9 years at 11 percent compounded annually will accumulate to $ ? (Round to the nearest cent.)
1. two sources of income with equal present valuec C at time 0 provide annual payents in arrears during 10 years. The first product, i.e. Product 1, pays 50,000 - 2,000k, where k is measured in years, and the second product pays a constant annual amount of b. The present vaues are calculated using a force of interest of delta(t) = 0.05 - 0.002t, where t is measured in years. derive a general expression for the pv of each income stream in function of k, C, and b and without integrals.
Find the Principal Value.
An investment accumulates at a force of interest δt = 0.01t / (3 + 0.01t^2) . Find the present value at time t = 0 of $3,900 due at the end of 7.5 year.
What is the present value of the accumulated amount of P7.5 million at ½%, m=4 for 2 years?
Find the equivalent future worth of the following payments. Use 6% interest rate compounded annually. Interest = 6% 238 239 240 -100 -100 -100 -100 -100 -100 -100 -50,000 2.
Find the value of x that makes the equivalent annual worth in years 1 through 10 equal to $800 per year. Use an interest rate of 10% per year. The cash flows in year 0 and year 10 has an unknown value x, and 1 through 9 has an annual worth of $800. The value of x is determined to be $.....