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: If $5,000 is invested at an annual rate of 6.5% compounded continuously, the future value S at any…

A: Information Provided; Principal = $5000 Annual rate = 6.5% compounded continously

Q: At what annual interest​ rate, compounded​ annually, would ​$500 have to be invested for it to grow…

A: FV = A * (1+r)nwhereFV = future valueA = amount investedr = interest raten = time period

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: 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: This problem demonstrates the dependence of an annuity's future value on the size of the periodic…

A:

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 what annual interest rate, compounded annually, would $520 have to be invested for it to grow to…

A: Future Value is that value which includes the interest earned and initial invested amount. It is…

Q: An investment will pay you $83,000 in five years. Assume the appropriate discount rate is 6.75…

A: The concept of time value of money will be used to solve this question.   We need to find the…

Q: If you invest $9,700 per period for the following number of periods, how much would you have…

A: aWe can solve this using Future value of annuity formula Future value is = P*((1+r)^n-1)/r "P" is…

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: is invested now, $2,400 two years from now, and $3,400 four years from now at an interest rate of 8%…

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

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: 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: What is the present value of $200 per year, at a discount rate of 18.25 percent, if the first…

A: Annuity Amount is $200 Discount Rate (r) is 18.25% First Payment is received is 6 years from now…

Q: An investment offers $8800 per year for 14 years with the first payment occuring one year from now.…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: If you invest $2,000 in an account with an annual yield of 12.0% compounded each month. What is the…

A: The question is based on the concept of calculation of future value . Formula as,  FV=PV*(1+rn)t*n

Q: Suppose that you will receive annual payments of $10,000 for a period of 10 years. The first payment…

A: Given: Annual payments = $10,000 Interest rate = 6% Period = 10 years

Q: An investment offers $6,600 per year, with the first payment occurring one year from now. The…

A: Annual payment (C) = $6,600 Required return (r) = 0.05 Present value or value today = ?   Present…

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

A: In the given problem we require to calculate the number of years that will make the investment three…

Q: suppose you have$13000 to invest. which of the two rates would yield the larger amount in one year:…

A: Investment Amount (pv) = $13,000Interest Rate (rate) = 11%Type of Interest Compounded =…

Q: An investment opportunity requires a payment of $910 for 12 years, starting a year from today. If…

A: The question gives the following information:

Q: An investment offers $9,200 per year for 17 years, with the first payment occurring one year from…

A: STEP 1 Given a specific rate of return or discount rate, an annuity's present value (PV) is the…

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: If money is invested at 6% per year, after approximately how many years will the interest earned be…

A: The time value of money is the concept that money available today is worth more than the same amount…

Q: What is the maximum amount you should pay today for an investment that pays a single future cash…

A: Future cash flow (FV) = $25000 Interest rate = 2% Semi annual interest rate (r) = 2%/2 = 1% Period =…

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: What is the value of today of an investment that will pay $100 per year for 5 years. Assume first…

A: Present value of annuity is the present value of recurring cash flows with regular intervals at a…

Q: What is the value today of $1,200 per year, at a discount rate of 6 percent, if the first payment is…

A: compound interest method:   in compound interest, interest on interest added so it's yield the good…

Q: A person invests $2000 in an account at 10% interest compounded annually. When will the value of the…

A: The simple interest rate is different than the compounded rate of interest. The compounding interest…

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

A: In the given question we require to calculate the the number of years that make the investment six…

Q: What is the future worth six years from now of a present cost of $375,000 to Corning, Inc. at an…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

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

A: We require to calculate the the number of years that make the investment twofold i.e. two times.…

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

A: In the given question we require to calculate the the number of years that make the investment…

Q: What nine-year annuity cash flow (i.e., annual cash flows for 9 years) will generate a 5.0% return…

A: PV is the present value (initial investment): $17,000.C is the annual cash flow of the annuity (what…

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.