How much must be invested now at 6% interest in order to have $75,000 in ten years? TVM Tables link (will open in a new window) Select one: O a. $70,755 O b. $134,854 c. $43,268 O d. $39,509 e. $41,879

Q: Sprint Inc. expects the​ following: ​UCFBT=$ 10 million in perpetuity from the end of year 1. ​Debt=…

A: Data given: ​UCFBT=$ 10 million in perpetuity from the end of year 1. ​Debt= $ 20 millionRb​ =5% Tax…

Q: Today, Thomas deposited $130,000 in a three year, 4% investment account that compounds quarterly…

A: Future value means the future worth of the money received or paid today. The future value is…

Q: question 14

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Q: If the current market rate of interest is 10%, then the future value of $500 today in 3 years is…

A: Variables in the question:PV=$500r=10%n=3 yearsAssumed rate of interest is compounded annually.

Q: company wants to make a single deposit now so it will have enough money to purchase a beckhoe…

A: Note- Requirement A) and Requirement B) being similar has been solved simultaneously. Present Worth…

Q: If $8,000 is invested in a certain business at the start of the year, the investor will receive…

A: The present value of a business opportunity is the current worth of potential future cash flows or…

Q: Find the FV of $1,000 invested to earn 12% after 6 years. Round your answer to the nearest cent.…

A: Present Value = $1,000 Interest Rate = 12% Time Period = 6 Years

Q: Current Attempt in Progress Sunland Discount Retail Company is considering investing in an annuity…

A: An annuity is a scheme that provides investors with a series of equalized payments in return for the…

Q: Compute the present value of $199,500 that is invested for 6 years and 9 months at 2.45% compounded…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Amount $70,000 a. Calculate P 1 + A = b. Calculate B= A c. Let R= B Time Rate 2% 30 years n r P ( ₁…

A: The time value of money concept is used to determine the amount of money that will be received in…

Q: ques 14

A: Given information: Future value of investment (FV) = $885.60 Number of years (n) = 16 Present value…

Q: Use Table 11-1 to calculate the compound amount (in $) on an investment of $3,500 at 10% interest,…

A: Time value of money is a financial concept which is used to analyze various investments and…

Q: A company wants to have $20,000 at the end of a ten-year period by investing a single sum now. How…

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

Q: An investment today of $4500 is worth $17,000 in 9 years. What annual interest rate would the…

A: In this question rate of return is to be find out. Rate of return is the rate which is earned on an…

Q: Future Value Computation What amount will be accumulated in 4 years if $10,500 is invested today at…

A: Future value is the amount that investor can get at the end of a specified period of time if he…

Q: How many years will it take for ​$510 to grow to ​$1,099.69 if​ it's invested at 8 percent…

A: Principal amount (P) = $510 Future value required (FV) = $1099.69 Interest rate (r) = 8% Period in…

Q: Your current account balance is $7,500.  You invested $6,300 5 years ago.  What rate of return did…

A: Answer) Future value = P×(1+r)^n r is interest rate P is amount n is years Given: Future value =…

Q: How much will $30.000 grow to in three years, assuming an interest rate of 1% compounded annually?…

A: The maturity value of investment can be calculated by calculating its future value. The future value…

Q: Find how much money needs to be deposited now into an account to obtain $4,400 (Future Value) in 12…

A: Given: Future Value =$4400No. of years (t) =12 yearsInterest rate (r)=5.5% per year==0.055Compounded…

Q: (Use beginning mode.) Person A invests $100/month 9% interest for 30 years. Person B invests…

A: The concept that indicates that any sum is worth more currently as compared to what it will be in…

Q: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?…

A: Future Value = PV × ( 1 + r )n where, PV = Present Value = $700 r = Interest Rate = 4% n = time…

Q: Answer the following time value of money questions assuming the interest rate is 5 percent. a. What…

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

Q: perpetuity pays 10, 000 at the beginning of each year. The present value of the payments calcu-lated…

A: First, we need to calculate the present value of the perpetuity at the initial interest rate of 7%.…

Q: Given invest $10000 an investment account paying 3.4507 interest, find the amount Mou would have…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: A person plans to invest $21,600 each year. The investment will earn 9% annually. If the person…

A: The Time Value of Money (TVM) is a fundamental financial concept that underscores the idea that a…

Q: Crane Company earns 9% on an investment that will return $451,000 8 years from now. Click here to…

A: Time value of money is the concept that is used to determine the correct worth of money invested…

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.

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.