hat is the present value of $3,000 received a. 10 years from today if the interest rate is 4% per​ year? b. 20 years from today if the interest rate is 8% per​ year?

Q: 4. The interest rate on a savings account is 3%. Youdeposit £100 today, then £100 at the end of the…

A: The objective of the question is to find the value of x that will empty the savings account after…

Q: Calculate the future value of ​$7 comma 0007,000 earning 1010 percent after one​ year, assuming…

A: The objective of the question is to calculate the future value of an investment of $7,000 earning an…

Q: (a) What is the present value of $31,000 due 12 periods from now, discounted at 12%? (Round answer…

A: Formula: Present value = 1 / ( 1 + R )n

Q: question 14

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Q: For each of the following, compute the future value: (Your answers should be positive values.)…

A: Future value-It is the value of money at a future date based on a given rate of return and it is…

Q: Present value) What is the present value of ​$500 to be received 11 years from now discounted back…

A: Present value refers to a function of time, value and money that is used for the calculating the…

Q: Part 1 ​(Present value of a growing​ perpetuity)  What is the present value of a perpetual stream of…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: What is the present value of $100 today, $200 at the end of Year 1, and $300 at the end of Year 2 if…

A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: F=$ 12000 i=?% 35 36 Year A= $100 $1000 Problem: n=36, A=$ 100, Pv=$ 1000, Fv=$12000 & type:…

A: Period (N) = 36 Annuity (A = PMT) $100 Present value (PV) = $1,000 Future value (FV) = $12,000 Type…

Q: Intro You invest $500 at an annual interest rate of 7% Part 1 What is the future value after 5…

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Q: 8. What is the present value of $100,0 00 received in 30 days if the discount rate is 3.0% annually?…

A: Simple interest is the amount paid on a principal part of a loan. Here the borrower does not pay…

Q: How much would $2,875 due in 50 years be worth today if the discount rate were 7.5%? Select the…

A: Present value factor can be calculated as follows = 1/(1+i) + 1/(1+i)^2 + 1/(1+i)^3 + 1/(1+i)^n…

Q: Present value of a growing​ perpetuity)  What is the present value of a perpetual stream of cash…

A: Solution:- When an equal amount is paid each period and grows at a uniform rate, it is called…

Q: Investment A will make N annual payments of $300.00 with the first of the N payments Investment A…

A: In ordinary annuity there are payments at the end of period and in annuity due payments are…

Q: What is the present value of $3,670 to be received at the beginning of each of 28 periods,…

A: Present value means the present worth of the money to be received or paid in the future…

Q: Which is more valuable, receiving $775 today or receiving $885 in 2.5 years if interest rates are…

A: Present value refers to the current worth of future cash flows, discounted at a specific rate. It is…

Q: $1000 accummualtes to $1500 in 5 years time and the rate of inflation is 3% p.a. What is the annual…

A: First, we need to determine the nominal interest rate using the formula below:We can determine the…

Q: You are offered ​$80,000 today or ​$400,000 in 10 years. Assuming that you can earn 16 percent on…

A: The PV of an investment refers to the combined worth of the cash flows of the investment assuming…

Q: Present Value of Amounts Due Assume that you are going to receive $620,000 in 10 years. The current…

A: a. Calculation of Present Value:Identify the future value to be received: $620,000Determine the…

Q: Assume that $1,000 is to be received 30 years from today. Compare the present values obtained using…

A: Present value is current worth of the future sum at a given interest rate.…

Q: What is the value today of $4,300 per year, at a discount rate of 10 percent, if the first payment…

A: Present Value can be calculated using PV function in excelPV (rate, nper, pmt, [Fv], [type])Rate The…

Q: Common Stock C has a standard deviation of return of 10 percent. Common Stock D has a standard…

A: Portfolio variance and standard deviation with two security With standard deviation of security 1…

Q: The present value of $6,000 you will receive 3 years from today is $5,333.98, assuming a 4% interest…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: What are the future value and the interest earned

A: Future Value is the compounded interest on the present value of an asset. The worth of a current…

Q: What is the future value in 180 days of $250,000 at 9% p.a. simple interest? Select one: a.…

A: In the given case, we have provided the principal or the present value , interest rate per annum and…

Q: What is the present value of $8,000 to be received at the end of 6 years if the required rate of…

A: Present Value Means The Current Value Of Money Received In The Future, At a Specified Rate Of…

Q: hat is the present value of a cash flow stream of 1,000 per year annually for 12 years that then…

A: Present value is the equivalent value of money today based on the based on the future cash flow from…

Q: Question What is the value, 6 years in the future, of $3,707 invested to earn an annual return of…

A: Answer 6.Answer 7.

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: The $55.0 million lottery payment that you have just won actually pays $2.2 million per year for 25…

A: The present value represents the current worth of future cash flows, accounting for the time value…

Q: What is the future value of $6000 earning 18% interest, compounded monthly, for 4 years? (Round your…

A: Given information, Present value (PV) = $6,000Annual interest rate (r) = 18% or 0.18Time (t) = 4…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.