In one year, you expect to receive $250. From year 2 forward, you expect to receive 3% more than you received the prior year. If the discount rate is 9%, what is the present value of these payments?     $5,566.67     $3,773.67     $4,166.67     $1,967.67

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A: Discount rate is the rate of interest that is the required rate of return on the investment that an…

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…

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Q: The ZLC consulting firm just signed an agreement to provide services to another firm.  In doing so,…

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Q: Please find the present value of $1,000,000 to be received 3 years from now, assuming a 5% discount…

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Q: 5) Consider a retirement savings account where the monthly contribution is $125 for the first 10…

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Q: you buy a store worth $250,000 with 20 percent down. The balance is to be paid off with equal annual…

A: Purchase Price of Store = $250,000Down Payment rate = 20%Time = t = 30 YearsInterest Rate = r = 9%

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A: Given Information: Amount to be received in future=$12.200 Number of years=4 Discount Rate=5%

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Q: What is the present value of $2,100 to be received 14 years from now assuming a discount rate of…

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Q: What is the present value of $9,500 to be received in 8 years if 7% is the proper discount rate?

A: Computation of present value: Hence, the present value is $5,529.09.

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A: Number of Payment = n = 30Payment = p = $3500Time = t = 10Discount Rate = r = 19%

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A:

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Q: What is the accumulated value of €1,000 at the end of 5 years if the nominal discount rate…

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A: Note : 1. As per the guidelines only first question will be answered. Kindly post the remaining…

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A:

Q: What is the present value of $200,000 to be received in 5 years if the rate of discount is 2.5%?

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

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Q: What is the present value of a $350 payment in one year when the discount rate is 10 percent?

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A: In perpetuity there are payments forever and there is no break of the payments in perpetuity.

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A: The payments occur at the beginning of each period is called an annuity due. Present value of…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.