How much would $5,500 due in 100 years be worth today if the discount rate were 6.5%? a. $11.75 b. $26.01 Oc. $10.13 d. $25.77 e. $23.64

Q: How much would1,000,000 due in 100 years with worth today if the discount rate is 20%?

A: Present Value is the current value of the future sum of money at the specific rate of return.

Q: How much would $4,625 due in 50 years be worth today if the discount rate were 7.5%?

A: It can be calculated using present value formula.   PV = FV / (1 + r / n)nt Where, PV = Present…

Q: You expect to receive $5,000 in 25 years. How much is it worth today if the discount rate is 5.5%?…

A: Present value refers to the current value of an asset that will be present at some future date which…

Q: What is the value today of $1,200 per year, at a discount rate of 9 percent, if the first payment is…

A: The concept of time value of money will be used here. Value today refers to present value. The cash…

Q: $100 at the end of three years is worth how much today, assuming a discount rate of (i) 100 percent?…

A: Provided a certain rate of interest, present value is actual value of a potential amount of money or…

Q: 27. If the discount rate is 7%, what is the present value, to the nearest dollar, of an investment…

A: In this question, we are required to determine the present value of perpetuity.

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: How much would $40,000 due in 50 years be worth today if the discount rate were 7.5%

A: Due Amount = 40,000 N = 50 Discount Rate = 7.5%

Q: How much would $9,000 t8 be received at the end of 50 years be worth today if the required rate of…

A: Using excel, FV is 9,000 Rate = 7.5% Time (nper) = 50 years PMT = 0 PV = ?

Q: What is the present discounted value of $400 to be received one year from now plus $500 to be…

A: Present value  = amount to be received in future/(1+r)^n where r is the discount rate (or 4%) and n…

Q: 2. An investment promises to pay a perpetuity of $100 per year starting from today. If the discount…

A: A perpetual annuity is a never-ending series of equal cash flows where the investment is done today…

Q: What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has…

A: The objective of the question is to find out the annual payment that one must receive to earn a 6.5%…

Q: What is the total present value of $150 received in one year, $200 received in two years, and $800…

A: Present Value (PV) is a financial concept that pertains to the valuation of future cash flows in…

Q: How much would $40,000 due in 50 years be worth today if the discount rate were 6.7%?

A: The present value of $40,000 due in 50 years at a discount rate of 6.7% tells us how much that…

Q: 1. How much would $10,000 due in 100 years be worth today if the discount rate were 10%?

A: Simple interest is a method of interest payment wherein a borrower of a loan pays interest expense…

Q: What is the value today of $2,000 per year, at a discount rate of 7 percent, if the first payment is…

A: Present value is an estimate of the present value of future cash values that may be received at a…

Q: What is the present value of RM9,070 to be received 5 years from today if the discount rate is 16…

A: Using the PV function in excel

Q: What is the present value of RM4,500 to be received 10 years from today if the discount rate is 6…

A: Using PV function in excel

Q: The present value of $100 expected two years from today at a discount rate of 6 percent is…

A: Present Value = future value / (1 +rate 0^no. of period

Q: 9. What is the present value of OMR12,500 to be received 10 years from today? Assume a discount rate…

A: Present value of future value is given by interest rate and discount rate.

Q: If $476 invested today yields $500 in one year's time, what is the discount rate?

A: If $476 invested today yields $500 in one year's time, the discount rate can be calculated using…

Q: What's the rate of return you would earn if you paid $3,480 for a perpetuity that pays $70 per year?…

A: The objective of this question is to calculate the rate of return on a perpetuity. A perpetuity is…

Q: B. Which of the following is worth the most today and why? a. $150 per year forever starting today -…

A: In order to determine the worth the most today, we have to find out the presennt value of all the…

Q: Finance Approximately how much would you need to invest today, to receive $280 in ten years, if you…

A: Future Value is $280 Time period is 10 years Interest rate is 10% To Find: Present Value

Q: What's the present value of a perpetuity

A: The present value of perpetuity is determined by dividing the amount of regular cash flow by the…

Q: How much would $1,000,000 due in 100 years be worth today if the discount ratewas 5%? If the…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: What is the 'future value in one year' of $106 today if the annual interest rate is 6%?   A.…

A: The mathematical formula of the concept is:

Q: how much would $3,050 due in 50 years be worth today if the discount rate were 7.5%

A: Present value : The current value of a future sum of money or stream of cash flows, given a…

Q: How much will $7500 in savings today be worth 5 years from now if it earns 6%, compounded monthly?…

A: Compound = Monthly = 12Present Value = pv = $7500Time = t = 5 * 12 = 60Interest Rate = r = 6 / 12 =…

Q: What's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $90 per year?…

A: Rate of return is the rate you earn on perpetuity i.e. amount initially paid.Rate of return you…

Q: How much would $7,550 due in 50 years be worth today if the discount rate were 7.5%?

A: Present Value: It represents the present worth of the future sum of the amount and can be estimated…

Q: What is the value today of $1,600 per year, at a discount rate of 10 percent, if the first payment…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: What is the total future value ten years from now of $400 received in 1 year, $350 received in 2…

A: Future value of a present amount With present value (PV), annual interest rate (r) and period (n),…

Q: How much would $1,675 due in 7.5 % ? years be worth today the discount rate were

A: Future amount = 1,675Maturity (due date) = 50 yearsDiscount rate = 7.5%/100 = 0.075000 in decimal

Q: What is the present value annuity due of RM2,000 with a 10 percent discount rate for 10 years?…

A: using the PV function in excel

Q: How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%?

A: Present value is the estimation of the current value of future cash value which is likely to be…

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.