The amount a person would have to deposit today (present value) at a 5 percent interest rate to have $1,000 five years from now

Q: How much would be in your savings account in 7 years after depositing $200 today if the bank pays 10…

A: Step 1: Given Value for Calculation Time = t = 7 YearsPresent Value = pv = $200Interest Rate = r =…

Q: Using an annual effective interest rate of 7%, find X

A: To find the value of X, we need to calculate the present value of the cash flows using the given…

Q: What is the present value of $30,000 you will receive 7 years in the future, ass

A: The present value is equivalent value of money to be received today that will be equal to money to…

Q: Use graphical approximation techniques or an equation solver to approximate the desired interest…

A: Nominal rate:The nominal rate, in the realm of finance, refers to the stated or advertised interest…

Q: Calculate  time value of money : If I am to receive $10k in 5 years, given a 5% rate of return, what…

A: Time value of money helps the management for decision making. as the value of money, today is high…

Q: What is the future value of a $900 annuity payment over five years if interest rates are 8 percent?…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: (Annuity interest rate) You've been offered a loan of $25,000, which you will have to repay in 5…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: What's the present value, when interest rates are 8.0 percent, of a $160 payment made every year…

A: The present value is the today’s value related to the future money at a given rate of return. It is…

Q: hat's the interest rate of a 5 - year, annual $5, 100 annuity with present value of $ 20,500? (Use a…

A: A sequence of equal payments is known as an annuity. It is a type of financial product that offers a…

Q: You want to invest in an annuity that will pay you $2,300 per quarter for the first 8 years and…

A: A series of regular payments in regular periods may be starting from day one or an interval is known…

Q: What’s the present value of a perpetuity that pays $1500 per year if the appropriate  interest rate…

A: Cash flow per year is $1500 The interest rate is 15% To Find: the present value of a perpetuity

Q: What is the value today of an annuity of $5,900 per year, with the first cash flow received three…

A: According to the information provided, the first cash flow is three years from today and the last…

Q: You deposit $10000 into a CD with 5% interest compounded monthly. The CD will last 10 years. When…

A: The objective of the question is to find the amount that will be accumulated in a Certificate of…

Q: You are planning to deposit in saving account $25000 three years from now, $35000 in the fourth…

A: Time value of money concept says that an amount invested today will have more value in future due to…

Q: Suppose you are going to receive $13,500 per year for five years. The appropriate interest rate is…

A: In an ordinary annuity, the cash flow occurs at the end of each period.Present value of ordinary…

Q: You plan on investing $1.900 every 4 years while earning 6% per year. How much money will you have…

A: Future value refers to the concept of time, the value of money which is used for computing the value…

Q: What's the future value of a 3%, 5-year ordinary annuity that pays $300 each year? If this was an…

A: Interest Rate = r = 3%Time = t = 5 YearsAnnuity = a = $300

Q: The amount a person would have to deposit today (present value) at a 5 percent interest rate to have…

A: Future Value = $1,000 Time Period = 5 Years Interest Rate = 5%

Q: What real annuity (in today’s dollars) will $1 million support if the real interest rate at…

A: Present Value = pv = $1 millionInterest rate = r = 2.3%Time = t = 20 Years

Q: What is the future value of a $900 annuity payment over five years if interest rates are 8 percent?…

A: The accumulated value can be calculated as future value of annuity

Q: What's the present value, when interest rates are 8.5 percent, of a $195 payment made every year…

A: Calculation of present value:- Present value is $ 2,294.12   EXPLANATION:- Annual payment(given)…

Q: What's the interest rate of a 5-year, annual $4,200 annuity with present value of $16,000? (Use a…

A: Solution:-When an equal amount is paid each period, it is known as annuity.We know, present value of…

Q: You are paid £3,500 annually for 8 years, with the first payment due in one year and the last…

A: Present value is the current worth of a future payment or stream of payments, taking into account…

Q: consider a $5,600 deposit earning 10 percent interest per year for 10 years. What is the future…

A: Deposit  amount = $ 5,600 Interest rate = 10% Period = 10 Years

Q: Consider a growing perpetuity that will pay $100 in one year. Each year after that, you will receive…

A: Perpetuity means a state of being forever, with no end or for an indefinite period of time. Here,…

Q: If you invest $2,700 today at an interest rate of 3.83 percent, compounded daily, how much money…

A: Future value refers to the value of current asset at future date with principal amount and…

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: You will receive a cash payment of $7072 in 7 years. If the relevant interest rate is 19.89%, how…

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

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.