How much invested now at 7% would be justsufficient to provide three payments, with the firstpayment in the amount of $10,000 occurring twoyears hence, then $7,500 four years hence, andfinally $4,000 eight years hence?

Q: What present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually?…

A: Present Value = Future value / (1+r)^n Where, r = rate of interest i.e. 8% n = no. of years i.e. 20…

Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…

A: To calculate the present value we will use the below formula   Present value = FV/[1+(r/m)]n*m Where…

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: What ls the present value (PV) of an Investment that will pay $2,500 In five years if the…

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

Q: How much should an investor pay to receive $12,000 three years (36 months) from now, assuming that…

A: RETURN 9%/12 0.75% NPER (n)  36 PMT 0 FUTURE VALUE 12000     Return= Rate

Q: Suppose that you now have $4,000. How much will you have after 10 years if you leave it invested at…

A: Future value (FV) refers to the value of an investment or an asset at a specified point in the…

Q: About how many years would it take for your investment to grow sixfold if it were invested at an APR…

A: Using NPER in Excel

Q: An investment will pay you $96,000 in six years. Assume the appropriate discount rate is 7.5 percent…

A: Compound = Daily = 365 daysFuture Value = fv = $96,000Time = t = 6 * 365 = 2190 daysDiscount rate =…

Q: At 9% compounded continuously, the investment doubles in (Round to one decimal place as needed.)…

A: Given that,

Q: What is the future equivalent of 10,000 per year that flows continously for 8.5 years if the nominal…

A: The following information has been provided in the question: Present value= 10000 per year Time =8.5…

Q: How many years will it take $7400 to quardruple at an effective rate of 4.25%?

A: Using the Goal Seek function Excel

Q: (Solving for n with nonannual periods​) About how many years would it take for your investment to…

A: Calculate the time taken to grow the amount to four times by using the formula of future value .…

Q: An investment will pay you $40,000 in 11 years. If the appropriate discount rate is 6.7 percent…

A: Present value is calculated by discounting the future cash flow using the appropriate discount rate.…

Q: Suppose a state lottery prize is to be paid in 25 payments of $240,000 each at the end of each of…

A: Given,  The payment is $240,000 Term of investment is 25 years

Q: How long will it take money to triple if it is invested at 7% compounded quarterly? 8.7% compounded…

A: Data given: Rate=7% compounded quarterly Rate=8.7% compounded continuously   Required: Time required…

Q: What would be the compound annual interest rate

A: Compounded interest             These are interest additional to the interest received on principle…

Q: A firm is scheduled to receive payment of $32,000 in 2 years.  What is the present value of this…

A: Present value of future cash flow can be calculated as follows: = Future Value/ (1 + rate)^number of…

Q: Assuming that the force of interest per annum is as given above and that it will fall by 50% over 10…

A: To calculate the present value of a series of four annual payments, we need to discount each payment…

Q: At what nominal rate, compounded monthly, would 12,000.00 have to be invested to amount to 21,811.13…

A: Interest is the amount charged on a loan or investment. It can be calculated by simple interest or…

Q: What per annum nominal interest rate with interest compounded quarterly would be needed to achieve…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: how much will a single investment of $10,000 be worth in 10 years

A: Time value of money(TVM) means that the amount of money received in the present period will have…

Q: Find how long it takes $800.00 to double if it is invested at 77% compounded annually. It will take…

A: Future value: The value of the asset at some future date which is based on the assumed growth rate…

Q: A sum of $150,000 now at an interest rate of 10% per year compounded semiannually is equivalent to…

A: The present value of money is the discounted value of future cash flows used to determine the…

Q: it is desired to save $20,000 by depositing $800 every 3 months in an investment that pays 8%…

A: Annuity means a set of finite number of payments which are the same in size and made in equal…

Q: An investment will pay you $43,000 in 10 years. If the appropriate discount rate is percent…

A: The present value is calculated using the following equationPresent value = Where n is the number of…

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.