If money earns 3.9% compounded monthly, what two equal payments, one in 1 year and the other in 2 years, would be equivalent to: a. $8,500 today? b. $4,000 due 1 year ago, but not paid, and $6,900 due 3 years ago, but not paid?

Q: hat equal payments in 3 years and 5 years would replace payments of $42,500 and $92,500 in 7 years…

A: Here the present value of two payments to be made at the end of 7 years and 8 years should be equal…

Q: A payment of $750 is due in 2 years, and $5,100 is due in 4 years. What single payment made today…

A: The concept of TVM refers to the interest-earning capacity of money because of which the money…

Q: years

A: Rate of interest r= 3% compounded annually, Given the t time period,t  = 7 years, Which means…

Q: With a 0.14 compounded semi annually, approximately how much money must be invested today in order…

A: Given information : Interest rate 14% Amount to be withdrawn $7,802 Time period (years) 7…

Q: What is the discounted value of payments of $38.00 made at the end of each year for 8 years if…

A: The time value of money is the foundational concept in finance which takes into account the effect…

Q: What equal payments in 3 years and 5 years would replace payments of $47,500 and $72,500 in 6 years…

A: The concept of time value of money will be used here. As per this concept money has the power to…

Q: What equal payments in 2 years and 5 years would replace payments of $ 37,500 and $97, 500 in 7…

A: Periodic payment refers to an amount that is being paid at every period including the interest and…

Q: A payment of $11,335 is due in 3 year, $18,000 is due in 4 years, and $8,850 is due in 6 years. What…

A: The present value of a future amount is calculated using the following formula,

Q: years. What single equivalent payment made today would replace the three original payments? Assume…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: What amount 1.5 years from now is equivalent to $ 7000 due in 8 years, if money can earn 6.2%…

A: Time period=1.5 years Future Value (FV) = $7000 Interest rate (r)= 6.2% compounded semiannually…

Q: You want to have $15,000,000 in an account exactly 25 years from today. You will make equal…

A: First we need to calculate future value of annuity by using equation below. Where FV= future value…

Q: How long will it take for the money to quadruple (in years) if it earns 8% compounded semi-annually?

A:

Q: What is the present value of a $20,000 lump sum that you will receive three years from now and that…

A: Future value (F) = $20,000Semiannual interest rate (r) = 0.025 (i.e. 0.05 / 2)Semiannual period (n)…

Q: A payment of $25,000 is due today. What three equal payments, one in 3 years, one in 5 years, and…

A: Present Value refers to a concept that states the discounted value or say value at today's time of…

Q: You put $1, 000 into a savings account today that offers a 5% APR with semi-annual compounding…

A: Number of period is 4 (2 x 2).

Q: An investment company pays 4% compounded semiannually. You want to have $10,000 in the future. (A)…

A: The Present Value refers to a concept that states the discounted value or say value at today's time…

Q: An investment company pays 4% compounded semiannually. You want to have $10,000 in the future. (A)…

A: Present value: Present value demonstrates that money received in the future will not be as valuable…

Q: If money earns 5.22% compounded quarterly, what single payment in two years would be equivalent to a…

A: The time value of money is a concept that is applied while computing the present worth of the money…

Q: What is the final amount of $2696 payable every three months for 5 years and 9 months, if money is…

A: Here, Quarterly Payment is P2696 Time Period is 5 years and 9 months Time Period in Quarters  (n)…

Q: If you were to borrow $9,600 over five years at 0.12 compounded monthly would be your monthly…

A: Please refer to the image below.

Q: A payment of $11,050 is due in 1 year, $19,500 is due in 5 years, and $8,550 is due in 6 years. What…

A: The concept of TVM refers to the interest-earning capacity of the money which makes money earned…

Q: A payment of $700 is due in 3 years, and $5,000 is due in 5 years. What single payment made today…

A: PV=FV11+rn=$70011+4.54×1004×3+$500011+4.54×1004×5=$612.062293+$3997.59977=$4609.66206=$4609.66

Q: How long in years will a certain sum of money to triples its amount when deposited at a rate of 7%…

A: The time period in months and years is calculated in the next step.

Q: If money earns 7.26% compounded quarterly, what single payment in three years would be equivalent to…

A: The future value of money refers to the monetary worth of an amount of money over time. It accounts…

Q: If you were offered $1000 today of $1050 in one year which would you accept if money can be invested…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: If money can earn 5.1% compounded monthly, how much more money is required to fund an ordinary…

A: The objective of the question is to find out the difference in the amount of money required to fund…

Q: You make a $2500 deposit today in a savings account that pays 3.5% interest APY compounded monthly.…

A: Initial deposit = $2500 Interest rate = 3.5% compounded monthly Period = 10 years

Q: If money earns 8.10% compounded quarterly, what single payment in three years would be equivalent to…

A: TVM refers to the concept that considers the effect of money's interest-earning capacity, which…

Q: F1. A $6300 payment due 2 1/2 years ago has not been paid. If money can earn 3.90% compounded…

A: Amount =  6300   Due years =  2 1/2 years Due years =  2.5 years       Interest rate =…

Q: Find the present value of a perpetuity of P15,000 payable semi-annually if money is worth 8%…

A: A perpetuity is a series of continuous payments made at regular intervals. It can also be understood…

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

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

Q: What amount should be deposited today at 4.56% compounded monthly to have $5000 in 3 years?

A: Interest Rate = 4.56%No. of years = 3Future Value (FV) = 5000

Q: What is the present value of an annual payment of $9,500 discounted back 8 years at an annual rate…

A: given, A=$9500 r=3% n=8

Q: HOW MUCH MONEY SHOULD BE DEPOSITED TODAY IN AN ACCOUNT THAT EARNS 4% COMPOUNDED MONTHLY, SO THAT IT…

A: Present value refers to the value of money today which is earned in future.

Q: A payment of $23,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: Given That: P.V=$23000 Payment is done in 3 equal payment Rate of interest= 4.25% Duration= 6 years…

Q: If money can earn 5.1% compounded monthly, how much more money is required to fund an ordinary…

A: The problem case focuses on calculating the additional amount required to fund the annuity payment…

Q: If you borrow $46,000 at 9.5% annual compound interest and pay it back with 11 equal annual…

A: Present Value = pv = $46,000Interest Rate = r = 9.5%Number of Payment = n = 11

Q: A $5000 payment due 1 1/2 years ago has not been paid. If money can earn 3.25% compounded annually,…

A: TVM is the concept that considers money's interest-earning capacity, which makes money earned…