ou will receive $1,000 forever starting from the end of year 2. The account pays 10% compounded annually. What is the present value today? 1,000 9,091 10,000

Q: Compute the present value of a perpetuity that pays $6,744 annually given a required rate of return…

A: Perpetuity is a financial term that refers to a stream of cash flows or a series of payments that…

Q: You deposit P10,000 today in savings account that pays 3% interest, compounded annually. How much…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q:

A: As per the given information: Amount of loan - $164,000 Rate of interest - 8% Period - 11 years To…

Q: You deposit $760 in an account one time that compounds monthlyat 2 percent. How much will you have…

A: Assumption: The rate of interest is monthly interest rate that is 2% per month. Computation:

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: You will pay a tuition cost of $50,000/year for 4 years and the first payment is due yearend. If…

A: The amount that should be deposited today is equal to the present value of the tuition cost for four…

Q: Starting the beginning of next year, you expect to receive four consecutive annual payments of $700…

A: The concept of time value of money will be used and applied here.As per the concept of time value of…

Q: need $20,000 five years from now. The account pays 9% compounded annually. If you will receive…

A: Present value is the equivalent value today of the future cash flow based on the time and interest…

Q: What is the present value of receiving $1,000 at the end of each year for 6 years, assuming 7%…

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

Q: You deposit $3000 in an account earning 7% interest compounded monthly. How much will you have in…

A: Data given: PV=$3000 I=7% (compounded monthly) N=15 years   Working Note#1 Computation of monthly…

Q: An ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an…

A: given, ordinary annuity: A=p 1811 n =15 r=10%

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: What must YOU invest today to receive an annuity of $4,500 for 10 years compounded at 8% quarterly…

A: PV of Annuity =P1-1(1+r)n r Where PV = Present Value r  = rate of interest n = Number of Period P =…

Q: You receive annual payments of $4,800 at the beginning of each year for 7 years. The discount rate…

A: The total value of yearly payments at a particular date in future for a given discount rate is…

Q: For $5,000, you can purchase an ordinary annuity that will pay you $920.23 each year for 8 years.…

A: The annuity is the periodic payment received in each period. The present value is the discounted…

Q: What is the present value of an annuity of $4000 received at the beginning of each year for the…

A: The present value of an annuity is an estimate of the present worth of future annuity payments based…

Q: 4. You deposit $50 each month in an account that pays 4.2% compounded monthly. How much is in in…

A: Compounded monthly refers to the annual rate of interest where the interest accrues at the end of…

Q: What will be your annual payment if you take nowa loan of $164,000 with annual equal repayments over…

A: Loan amount = $164,000 Loan period = 11 years Interest rate = 0.08 (i.e. 8%) Amount of annual…

Q: An annuity due pays $17,250 every year for the next 6 years and earns a 7.34% annual return. How…

A: Annuity Due = a = $17,250Time = t = 6Interest Rate = r = 7.34%Type Payment = due = at the beginning

Q: I promise to pay you 25 annual installments of $5,000 starting five years from today. If the…

A: Present Worth: It is the present value of the annuity cashflows discounted over a period of time.…

Q: Čalculate the compounded future value at EOY 20 of 20 annual payments of $5,000 each into a savings…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: you deposit $1,000 each year into an account earning 3% interest compounded annually. How much will…

A: Time value Value received today by an individual is of more worth than receiving the exact value in…

Q: You deposit $4000 in an account earning 3% interest compounded monthly. How much will you have in…

A: The amount after 10 years will be the future value of the initial deposit.

Q: Assume that you make quarterly payments of $ 750 into an annuity paying 9% interest compounded…

A: Quarterly payment = $750 Interest rate = 9% Quarterly rate = 0.09/4 = 2.25% Time =10 years Quarterly…

Q: You deposit $4000 in an account earning 5% interest compounded monthly. How much will you have in…

A: Given: Interest rate = 5% Present value = $4,000 Period = 10 years

Q: You deposit $4000 each year into an account earning 2% interest compounded annually. How much will…

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: You found out that now you are going to receive payments of $9,000 for the next 11 years. You will…

A: Annual Payments = $9,000 Time period = 11 years Annual interest rate = 11%

Q: Annuities At the end of each quarter, $1000 isplaced into an account that pays 12%,…

A: The future value of ordinary annuity is the group of instalment payment of fixed amount at a certain…

Q: need $20,000 five years from now. The account pays 9% compounded annually. If you can receive…

A: Present value is the equivalent value today of the future cash flow based on the time and interest…

Q: Seven years ago, you deposited $1000 into an account earning r = 10% APR compounded annually.  How…

A: Future value: Future worth (FV) is the sum to which an ongoing venture will develop after some time…

Q: What iS the fair market price today for an annuity that pays you $350 at the beginning of each month…

A: Annuity refers to the series of payment at regular interval for certain period.

Q: what amount will accumulate if we deposit 8500 at the beginning of each year for the next 10 years…

A: Solution Given Deposit at the beginning of each year 8500 Number of period 10 years…

Q: You deposit $4000 each year into an account earning 8% interest compounded annually. How much will…

A: given  PMT = 4000 n= 20 years i=8% FV = ?

Q: What is the present worth of a perpetual annuity of $2,000 each payable at the end of each year?…

A: Perpetual Annuity is $2,000 Interest Rate (r) is 10% Compounding Period (m) is Quarterly i.e. 4…

Q: You put $1,000 into a savings account today that offers a 55% APR with semi-annual compounding…

A: GIVEN, PV = $1000 N = 2 M = 2 (SEMI ANNUAL) R=55%

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 P30,000 is deposited each year for 9 years. How much annuity can a person get annually from the…

A: An annuity refers to a fixed amount or stream of payments or deposits made. Therefore, it helps in…