The future value of $200 received today and deposited at 8% for three years is ……. $151.94 $201.94 $251.94 The present value of $100 to be received 10 years from today, assuming an opportunity cost of 9%, is …….. $178.95 $42.24 $1587.33 You deposit $17,000 each beginning of year for 10 years at 7%. How much will you have at the end of the period? 251,321.19 148,963.78 721,960.12 Suppose you are going to receive $10,000 per year for 5 years. The appropriate interest rate is 11%. What is the present value of the payments if they are in the form of an ordinary annuity? $63,995 $36,959 $120,369

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: For future value $20,000, 18 years at 6% compounded interest continuously, determine the questions…

A: Present value refers to the current value of the amount that is expected by an investor to receive…

Q: q5. An investment product will provide a cash flow of $613 at the end of each year for the following…

A: Q7) Effective Annual Rate = (1+APR/No. of periods)^No. of periods-1Effective Annual Rate =…

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…

Q: What is the present value of $1,000 to be received 4 years from today? Discount the cash flows at…

A: In Continuous compounding, The interest continually compounding, which is sometimes phrased as every…

Q: Find the future value, using the future value formula and a calculator. (Round your answer to the…

A: P = $119,900 r = 5.5% t = 20 years

Q: hat is the present value of $3,000 received a. 10 years from today if the interest rate is 4%…

A: Present value is the equivalent value of money today to be received in the future based on time and…

Q: FUTURE value of $1k a year deposited for 10 years @ 4% interest

A: Future value is the value of a sum of money after a specific period of time. It is the valuation of…

Q: Rank the following from highest present value to lowest present value. Assume they all have the same…

A: Lets assume that the rate of interest is 10% Lump sum - $1000 Time – 10 yrs r- 10% Present Value…

Q: Find the present value for the following future amount. $1000 at 4% compounded annually for 7 years…

A: To find the present value of $1000 at a 4% annual interest rate compounded annually for 7 years, we…

Q: What present value amounts to $15,000 if it is invested for 20 years at 6% compounded annually?…

A:

Q: Compute the future value of $536 invested every year if the appropriate rate is 11.2% and you invest…

A: Annual deposit (A) = $536 r = 11.2% n = 4 years

Q: A 100 dollar cash payment in 20 years and a discount rate of 5 percent gives you a specific present…

A: The current value of the future expected cash flows at a given discount rate can be found by using…

Q: How much will a $100 deposit made today be worth in 10 years if interest is compounded quarterly at…

A: Future value of the deposit includes the amount being deposited and amount of interest accumulated…

Q: APPLY THE CONCEPTS: Present value of a single amount in the future (better overview of question in…

A: We have to use the table given above

Q: Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: Find the future value of the given present value. Use 360 days per year for your calculation. The…

A: Future value is calculated by compounding the present value.

Q: Find the present value of 30 annual payments of $3,500 per annum where the first payment is made 11…

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

Q: Future Value Computation You deposit $4,500 at the end of every year for 3 years. How much will…

A: Compounding value means the increasing value of the deposit due to the interest received on both the…

Q: Plz correct solution.

A: The objective of the question is to calculate the equivalent annual worth of an investment…

Q: You have the choice of receiving $100,000 now or $43,000 now and another $70,000 three years from…

A: Present value refers to the current value of a future sum of money or cash flow, discounted at a…

Q: Calculate the present value of $2,000 for each of the following: interest rate is 12%Show work the…

A: Step 1:a)We have to calculate the present value of the cash flow.Calculations are shown below: We…

Q: If money is worth 1.07%, determine the present value of perpetuity of P 4.489 pavable annually, with…

A: Inputs Interest Rate = 1.07% Perpetual Amount = 4489 Payments will start at end of 5 years

Q: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?…

A: Future Value = PV × ( 1 + r )n where, PV = Present Value = $700 r = Interest Rate = 4% n = time…

Q: Find the present and future values of an income stream of $3000 per year over a 15-year period,…

A: Present Value = Cash Flows * [ ( 1 - e-rt ) / ( er - 1 ) ] Future Value = Cash Flows * [ ( ert - 1 )…

Q: What is the present value of $170 a year for 3 years discounted back to the present at 3%?

A: Annual payment (P) = $ 170 Number of annual payments (n) = 3 Annual interest rate (r) = 3%

Q: Consider the following future value. (Round your answers to the nearest cent.) $3,739 at 11 7/8%…

A: The question is based on the concept of time value of money, where one dollar is worth more today…

Q: You are offered the choice of 4 cash flow streams. Assume an 8% discount rate for each. Which cas…

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

Q: As the winner of a competition you are entitled to $5,000 at the end of next year, with this amount…

A: It is a case of the growing annuity. Here, the annuity is growing each year with a fixed percentage.…

Q: Calculate the present value of $2,000 for each of the following: interest rate is 12%Show work the…

A: The objective of this question is to calculate the present value of $2,000 for each of the following…

Q: 3. Determine the future values if OMR 5,000 is invested in each of the following situations: a. 5…

A: Future value can be defined as the worth of money at a future date, computed in accordance with the…

Q: b first payment is paid today. Your opportunity cost is 8% compounded semi-annually. An investment…

A: The present value of a cash stream: The present value of a cash stream is the value of the series of…

Q: if the annual rate is 10% and the annual infinity (forever) payment is $1000, what is the present…

A: Perpetuity refers to the series of periodic payments that have no ending i.e. investors or…

Q: a. Find the FV of $1,000 invested to earn 10% after 5 years. Round your answer to the nearest cent.…

A: We can determine the FV of an amount by using the time value of money formula as below.

Q: Q. No. 02: Find the future value of the following annuities. The first payment in these annuities is…

A: Using Excel FV Function

Q: 3. Determine the future values if OMR5,000 is invested in each of the following situations: a. 5…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: Find the future value if $7000 is invested for 6 years at 11% compounded annually. (Round your…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: What is the future value of $80,000 received today after 14 years if it is invested at 8% compounded…

A: Time value of money is one of the important concept being used in finance. It says that a dollar…

Q: Suppose that you will receive annual payments of $8,300 for each of the next 10 years. The discount…

A: When payments are made at the beginning of the period it is called annuity due. This can be…

Q: Find the present value of 20 annual payments of $2,000 per annum where the first payment is made 14…

A: Present value refers to the current worth of a future sum of money or cash flow, given a specified…

Q: At a discount rate of   6.00​%, find the present value of a perpetual payment of ​$   1,000 per…

A: Perpetual payment = $1000 Discount rate = 0.06   Discount rate = 0.03     Present value of the…

Q: COMPUTE THE FOLLOWING: SHOW YOUR SOLUTION. 3. Determine the future values if P5,000 is invested in…

A: Future Value = Present value * (1+rate)^years

Q: Suppose you wish to have $17,250 in 5 years. Use the present value formula to find how much you…

A: Compound = semiannually = 2 Future value = fv = $17,250 Time = t = 5 * 2 = 10 Interest rate = r = 5…

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.