ou wish to have an investment that will bring about $50 000 in ten years, and the rate of return is 8% per annum. Required: a. In term of time value of money, what is the amount of $50,000 represent? b. How much do you need to invest now if the rate is compounded annually (to the nearest dollar)? c. If you have $50,000 now and put the sum into a bank account that pays 5% per year. How much will you have in 8 years if the rate is compounded semiannually, quarterly, monthly and daily (to the nearest dollar)?

Q: If you want to save $50,000 in 8 years, you will earn 6.5% on your investment. a. How much will your…

A:

Q: You have a cash of Rs. 100,000 today. What will be its value after 5 years if you make an investment…

A: Present Value = 100,000 Time Period (N) = 5 Interest Rate = 12%

Q: If you have $60,000 in a bank account that is paying an interest rate of 4 percent that is being…

A: To find out how many years it will take to double an investment with a constant interest rate, you…

Q: : identify the values for the variables, in write an equation that can be used to find the amount of…

A: Future Value: It is the future worth of the present sum of the amount and is estimated by the…

Q: 7. Suppose you find an investment account that you decide to contribute to every month over the…

A: Future value is calculated to determine the worth of an investment in the future date if a…

Q: If $5,000 is invested at an annual rate of 6.5% compounded continuously, the future value S at any…

A: Information Provided; Principal = $5000 Annual rate = 6.5% compounded continously

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: Suppose that you now have $4,000. How much will you have after 10 years if you leave it invested at…

A: Future value (FV) refers to the value of an investment or an asset at a specified point in the…

Q: years from today, and 2,000 four years from today. What will the value of your account be 4 years…

A: The future value is the estimated value of an investment that accounts for compound interest or…

Q: Determine the amount P that you should deposit into an account 2 years from now, in order to be able…

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

Q: Future Value is calculated in Excel using the following function and pa Future Value = -FV(APR/12,…

A: Future Value refers to an investment's worth to be received in the upcoming time at a constant…

Q: You are thinking on purchasing some assets that will give you 5,000€ per year, starting in 5 years,…

A: In order to decide whether to purchase the asset we need to find out the present value of cash…

Q: Use logarithms to solve the problem. How long will it take an investment of $7000 to triple if the…

A: Future Value = Present Value (1 + g)n

Q: You expect to receive two cash flows: $34,000 paid in 5 years and $51,000 paid in 10 years. You'll…

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

Q: Suppose you will need $20,000 in 3 years. How much must you invest per month in order to have…

A: Present value is the current worth of the amount that is expected to be received in future date.

Q: Use logarithms to solve the problem. How long will it take $11,000 to grow to $19,000 if the…

A: Compound = monthly = 12 Present value = pv = $11,000 Future value = fv = $19,000 Interest rate = r =…

Q: You have $10,000 to invest for five years. - How much additional interest will you earn if the…

A: Given Information : Amount invested - $10,000 (Present value) Rate of interest (r) - 5%/4.5% Time…

Q: Suppose you have an account that will grow to $381,000.00 in 15 years. It grows at 3% annual…

A: The annuity refers to a payment series that provides the holder with a periodic payment in exchange…

Q: Roughly how many years would urn $1,000 into $16,000 if you can invest the money at 9% per year,…

A: Time value of money:According to the "time value of money" hypothesis, a dollar received now is…

Q: You expect to receive two cash flows: $41,000 paid in 5 years and $61,500 paid in 10 years. You'll…

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

Q: What is the present value of your end-of-year investment of $1,000 per year, with the first cash…

A: According to the time value concept, the purchasing power of a sum of money today is more than the…

Q: You invest $10,000 into a money market account that pays interest on a semi-annual basis (e.g.,…

A: We use NPER function in excel by taking present value as 10000 and future value as 20000 and…

Q: An investment will pay you $100,000 in 10 years. If the appropriate discount rate is 6 percent…

A: Future value = fv = $100,000 Time = t = 10 * 365 = 3650 days discount rate = r = (1 + (0.06 / 365))…

Q: Suppose you receive​$130 at the end of each year for the next three years.    a. If the interest…

A: The PV of an asset is the value of all its cash flows today discounted at an assumed interest rate.…

Q: how much should you invest now in a single investment if you expect to withdraw $45,000 in 9 years…

A: Step 1: Introduction Present Value: The value of the money identified today for the money/sum of…

Q: 7. With an initial investment of $1000, I will add $100/month for the first year, and $200/month for…

A: An investment is dedicating an asset for the purpose of earning a return on it. When an investor…

Q: If you invest $2,000 in an account with an annual yield of 12.0% compounded each month. What is the…

A: The question is based on the concept of calculation of future value . Formula as,  FV=PV*(1+rn)t*n

Q: How much time will it take you to accumulate $625,000, assuming you invest $15,000 today and an…

A: The problem is asking us to calculate the time it will take to accumulate a certain amount of money,…

Q: Suppose you found an investment that earns 6.0% each year. Suppose you want to withdraw 24,000…

A: Given information: Investment earns 6% Future value is $24,000 Number of years is 4

Q: Suppose you make a one-time $ 8,000 investment into an account that yields a 12% annual return. If…

A: The FV of an investment refers to the total value of its cash flows at a future date assuming that…

Q: If a RM10,000 investment will return RM25,000 to you in five years, then to the nearest percent what…

A: Investment = RM10,000 Return = RM25,000 Period = 5 Years

Q: If $25,000 is invested at 10% per year compounded monthly, in approximately how many years will the…

A:

Q: How much time will it take you to accumulate $500,000, assuming you invest $15,000 today and $150 /…

A: The time value of money concept states that the value of a certain amount of money on the future…

Q: You are going to invest $5405 in 3 years and $7923 in 6 years.  If you expect to earn a return of…

A: Future value of investment amount is calculated as Future value = Value of investment×1+rn Where, r…

Q: Suppose you save $100 per month. How long will it take you to accumulate $10,000 if the annual…

A: Following details are given to us in the question : Monthly saving = $100 Future value = $10000…

Q: How much must I start investing now, per month, to have $1M in 25 years? The bank pays an APR of…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Solve the following problem. If P100,000.00 is invested in a bank at 4.5% simple interest annually,…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

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.