If the current rate of interest is 10% and interest is compounded semiannually, what is the present valueof receiving $10,000 at the end of 7 years?Question 3lf the current interest rate is 12% and interest is compounded semiannually, what is the present value ofreceiving $5,000 each year for 10 years?

Q: Find the present and future value of an income stream of $6000 per year for a period of 10 years if…

A: Present value (PV), also referred to as present discounted value, signifies the current value of a…

Q: What is the present value of $1,000 paid at the end of each of the next 56 years if the interest…

A: Present value is the current worth of the amount deposited or received in future date.

Q: What is the present value of a $700 perpetuity if the interest rate is 5%? If interest rates doubled…

A: The present value is the value of an asset or liability as of a specific date, adjusted for the time…

Q: Find the present value of the given future amount. $31,000 for 9 months at 8% simple interest What…

A: The Time Value of Money states that a dollar earned today is more valuable than any time in the…

Q: What's the present value of $15,500 discounted back 5 years if the appropriate interest rate is…

A: Present Value = Future Value/(1 + r)^t Where, Here, Future Value = $15,500 n = 5*2 = 10 periods r =…

Q: What is the present value of $5,000 that will be paid to you eight years from today at 8% interest?

A: Data given: FV=$5000 n=8 years i=8% (assumed compounded annually)   Required= PV

Q: What is the present value of an $800 perpetuity if the interest rate is 8%? If interest rates…

A: Present value of perpetual cash flows is computed by following formula:-PV = wherePV = Present value…

Q: 6) What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per…

A: Given, PV of amount is $20000 rate is 4% term is 4 years

Q: How much interest will be earned if $5,000.00 is invested for 3 years at 10% compounded semi-annual?…

A: Future value is computed by following formula-FV = A × (1+r)nwhere,FV = Future value A = Amount…

Q: What is the present value of a $90,000 annual annuity for 10 years with an additional $1,000,000…

A: The present value of investment is the sum of present value of annuity and the present value of…

Q: What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded…

A: The future value concept refers to the value of money in the future when it is kept as savings or…

Q: What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per year? O…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: Calculate the future value of $2,000 in a. 3 years at an interest rate of 10% per year. b. 6 years…

A: Future value = Present value ×(1+pir) ^n Where,  Pir = Periodic interest rate n = number of periods…

Q: What is the present value of $10,000 paid at the end of each of the next 68 years if the interest…

A: Present value of ordinary annuity may be calculated though following formula   Present Value =…

Q: Calculate the future value of $5,000 in a. 4 years at an interest rate of 9% per year. b. 8 years at…

A: Step 1: Step 2: Step 3: Step 4:

Q: if the simple interest on $7,000 for 8 years is $3,920, then what is the interest rate.

A: Time value of money is one of the useful concept of finance. It says that a dollar amount invested…

Q: What is the present value of $2,000 that will be received after 4 years if the interest rate is 12%…

A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…

Q: What is the present value of annual payments of $2,000 for 12 years at 1 percent?

A: The present value (PV) is the current value of a future sum of money or cash flow, taking into…

Q: What is the present value of $3,000 paid at the end of each of the next 77 years if the interest…

A: Annual payments = $3000Number of years = 77Interest rate = 10%To find: present value

Q: If $16800 is deposited in a savings account today, what amount will be available three years from…

A: Future value is an estimate of the future cash flows ​​that may be received at a future date,…

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: Annuity X pays $1,200 at each year-end for 15 years. Annuity Y pays $1,100 at the beginning of each…

A: Annual Rate = r = 8%Annuity XPayment = px = $1200Time = tx = 15 YearsPayment Type = At the end of…

Q: Question 1 What is the future value of $650 deposited for one year earning an 10 percent interest…

A: Future Value refers to the compounded value of a single cash flow received today or multiple cash…

Q: Which comes closest to the future value of $875 to be received at the end of 7 years, if the amount…

A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…

Q: Find the present value of the given future amount. $74,000 for 23 months at 7% simple interest

A: Future value = fv = $74,000 Time = t = 23 / 12 years Interest rate = r = 7%

Q: What is the future value of $4,500 after 6 years if the nominal interest rate is 8.50% compounded…

A: The concept of time value of money will be used here. To compute the future value we compound the…

Q: If you deposited $10,000 each year for 10 years and the interest rate is 5.00%, what is the value at…

A: INFORMATION: RATE 5% YEARS 10 PMT (MONTHLY DEPOSIT) 10000 PRESENT VALUE $0

Q: What is the value today of receiving $4, 500 at the end of each year for the next 6 years, assuming…

A: Present value is the equivalent value of the future money based on time value of money that is…

Q: If you deposit $1000 in one year, $2000 in two years, and $3000 in three years, how much will you…

A: Future value (FV) is the value of an investment or cash flow at a specific point in the future,…

Q: at is the future value of $750.00 received today and deposited at 8% per year for 10 years with…

A: Future value of the amount is the amount being deposited and amount of interest accumulated over the…

Q: What is the rate of interest by what $100 becomes $200 in 4 years?

A: An interest rate is the cost of borrowing money or the return earned on invested funds, expressed as…

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.