How much would need to be saved annually for 6 years to get 100 000 € by the time the last deposit is made? The interest rate is 2.15 % and the source tax is 30 %. Future value Number of payments Interest rate Source tax Net interest rate Payment

Q: How much would be in your savings account in 7 years after depositing $200 today if the bank pays 10…

A: Step 1: Given Value for Calculation Time = t = 7 YearsPresent Value = pv = $200Interest Rate = r =…

Q: A person buys a piece of lot for 100,000 pesos down payment and 10 deferred semi-annual payments of…

A: Quantum and timing of cash flows emanating from an investment decision are known. The present worth…

Q: What is the future value annuity due of RM32,000 for the next 10 years with a discount rate of 8%?…

A: Amount of Annuity = RM 32,000 Years(n) = 10 Interest Rate(r) = 8% Future Value of Annuity = RM…

Q: If you need to withdraw $5,000 a year for years 1 - 8 and the required rate of return is 9%, how…

A: INFORMATION: RATE 9% YEARS 8 PMT (MONTHLY WITHDRAW) $5,000 FUTURE VALUE $0

Q: If you have only Rs.750 on Jan 1, 2007, what interest rate compounded annually for 3 years must you…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: f money is borrowed today with an amount of P50,000.00 and subjected to a 9% compounded quarterly…

A: In this we need to find out present value factor and from that we can get the quarterly payment.

Q: How much will a $100 deposit made today be worth in 10 years if interest is compounded quarterly at…

A: Future value of the deposit includes the amount being deposited and amount of interest accumulated…

Q: Example 6 A person requires a loan of R10 000. The bank offers a simple interest rate of 15% p.a..…

A: Lets understand the basics. For calculating loan period we will need to use below formula. Interest…

Q: Assuming an interest rate of 6.88% compute how much income you will have each month if you save $500…

A: A fixed amount of money paid to an individual throughout, without any end is known as an annuity.…

Q: If you borrow $6,000 for 4 years and agree to pay back $8000, what simple interest rate will you end…

A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…

Q: What is the future value of $10,000 on deposit for 5 years at 6% simple interest?

A: The objective of this question is to calculate the future value of a deposit of $10,000 for 5 years…

Q: What amount today

A: Step 1: Given Value for Calculation Future Value = fv = $100Time = t = 1 YearsOpportunity Cost = r =…

Q: How much is accumulated in each of the savings plans over two years? a. Deposit €1100 today at 15…

A: Given: Particulars 15% 12% Deposit € 1,100 € 700 Years 2 2

Q: A book offers 0.35 anual simple interast rate for a particular depost How much interest will be…

A: Given,Interest rate = 0.35% or 0.0035Principal value = 2,000,000 pesosNumber of years = 5

Q: your given the following information about a home loan: loan amount 300000 number of years 25 years…

A: As per the Given Informatin we have, Loan= 300,000 Interest Rate Given=7% Upfront Rate=3% Total…

Q: Calculate the inflation-free interest rate assuming that the inflation rate is 6% and the nominal…

A: Solution :  As per the question Nominal Rate Rate = (1+Real Rate ) *(1+Inflation Rate) - 1 Real Rate…

Q: You wish to accumulate $100,000 through monthly payments of $100. If you can earn interest at an…

A: To calculate the time period for a required future value with given periodic deposits at a given…

Q: How much money will you have after 4 years if you deposited P10,000.00 in a bank that pays 6% simple…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: preser savings accO for 50 vears If interest is 6%? The present sum is closest to:

A: Given information : Periodic withdrawal 1000 Tim period 50 Interest rate 6% Since the…

Q: What's the present value of a perpetuity

A: Perpetuity means a series of equal infinite cashflows, that occur at end of each period with…

Q: Under what interest rates would you prefer a perpetuity that pays $2 million a year to a one- time…

A: This question require us to compute the interest rate in case of a perpetuity.

Q: At 8 percent interest rate per year (annual interest payment), how many years does it take to…

A: Answer: Calculation of the time it will take to quadruple the money: Formula, we will use here:…

Q: What’s the present value of a perpetuity that pays Php250 per year if the appropriate interest rate…

A: In finance, the time value of money concept states that the money available today is considered…

Q: You take a loan from a bank to buy a car with a value of 100000 for 5 years (60 months). You pay…

A: Loans are paid by the monthly payments that carry the payment for interest and payment for loan also…

Q: How much would your monthly payment be if you wish to pay the total amount due on a loan of P144,039…

A: Given, The total value of loan amount due is P144,039. Rate of interest is 6%. Number of years 11.

Q: What is the price of a perpetuity that pays $50 annually and the required rate of return is 6%?

A: In this question we need to compute the price of a perpetuity.

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: PMT = 58 Period = 13 years  Nominal rate of interest = 7.23% Additional amount = 1000

Q: How much should you deposit in an account so that you can withdraw $5300 every year for the next 18…

A: Using excel PV function

Q: A person buys a piece of property for P100,000 down payment and ten deferred semi-annual payments of…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: With a 0.07 interest rate, approximately how much money must be invested today in order to withdraw…

A: Amount invested today = P{[1 - (1 + r)^-n] / r}

Q: A BANK CHARGES 15% SIMPLE INTEREST ON A P500.00 LOAN. HOW MUCH WILL BE REPAID IF THE LOAN IS PAID…

A: Present Worth                            P 500.00 Interest Rate 15% Time Period (Months) 3

Q: Consider each of the following deposit cash flow series. What will the final balance be (e.g.,…

A: Interest Rate = 10% Time Period = 5 Years

Q: (Comprehensive problem) You would like to have $54,000 in 16 years. To accumulate this amount, you…

A: Future value = $54,000Period = 16 yearsInterest rate = 6% per annum

Q: Question:  if you have to pay 50000 rupees after 10 years and interest rate is 8% in the bank , how…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: How much interest did you earn during the entire period of time?

A: Annuity is the deposition of a fixed amount at fixed interval of time over a specified period.…

Q: If P dollars is borrowed at a rate or r per year to be paid back in t years, the monthly payment…

A: The amount borrowed as a loan needs to be repaid back to the lender along with the interest.…

Q: 1. What is the present worth of two P250 payments at the end of the fourth year and sixth year? The…

A: Using Simple Interest Present Value = Future Value(1+rt) Using Compound Interest Present Value =…

Q: What is the present value of a 5 year, €7,000 annuity assuming a discount rate of 8%?

A: The present value of an annuity is a financial concept used to determine the current value or worth…

Q: Determine the number of the years if a deposit of P905,000 will earn P105,350 if invested at the…

A: Given the deposit amount, the interest rate and the amount of interest, the number of years can be…

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.