The present value of 6,500 at 3% interest rate after 5 years is a. 4313 b. 4315

Q: What will be the equivalent future amount after 5 years of a sum of $1500 with compound interest…

A: Compounding is the technique to compute future value of present amount by using CVF or appropriate…

Q: Nhat compound interest rate j, is equivalent over 11-year period to a compound interest rate of…

A: The future value of a lump sum: The value of an amount invested today, at a given rate of interest,…

Q: 12.) Find the simple interest on a loan of P65,000.00 if the loan is given at a rate of 8% and is…

A: Simple interest is the interest paid on a principal balance for a given period of time at a…

Q: The present value of $500 to be received 7 years from now at an interest rate of 8percent is ?

A: Calculation of Present Value:The present value is $291.75.Excel Spreadsheet:

Q: what is the nominal rate of interest compounded continuously for 8 years if the present worth factor…

A: Continuous Compounding N = 8 Present Value factor = 1.7506725

Q: (b) An annuity immediate has quarterly payments of P 5,000 for 6 years at a rate of 4% convertible…

A: Annuity immediate which starts at the beginning of period. Present value is the equivalent value…

Q: (a) An annuity immediate has semiannual payments of P 10,000 for 10 years at a rate of 6% convert-…

A: In case of an immediate annuity, the periodical payments start immediately, and the first payment is…

Q: What is present value of RM 1456 due in 6 months if 8% interest is paid?

A: The present value can be calculated with the help of present value function.

Q: 1. Using simple interest computations, find the future value of $3,620 at 2 3/8% for six years (by…

A: Hi, since there are multiple questions posted, we will answer the first question. If you want any…

Q: Rate of interest = 12% 1. How much must be the present value of Php 100 if it is to be received…

A: The present value calculates the money's worth in today's terms.

Q: 4. What's the present value of $10,000 received after 10 years appropriate interest rate is 10%,…

A: using the PV functions

Q: (a) Given the effective rate of interest as 7.5%, calculate the present value which will provide…

A: Present value is the future value discounted using the interest rate and time period. Present value…

Q: (1) (a) An annuity immediate has semiannual payments of P 10,000 for 10 years at a rate of 6%…

A: Present value refers to the current value of the amount of money in the future affected by…

Q: An installment contract for the purchase of a car requires payments of $263.53 at the end of each…

A: Monthly payment (M) = $263.53 n = 6 years = 72 payments r = 9% per annum = 0.75% per month

Q: 7. Find the interest on Php80,500 at 8% simple interest rate for 9½ years.

A: simple interest is calculated as a product of principal amount, rate and the time. i.e P* R*T

Q: If R17 500 accumulates to R22 000 after 53 months, the continuous compounding interest rate is

A:

Q: What is the present value of a $500 ordinary annuity at an interest rate of 6% for 5 years? Select…

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: Finding the Interest Rate per Compound Period Principal Future Value Term Interest Interest Rate per…

A: Principal (P) = P 50,000 Future value (F) = P 114,860 Term = 2.5 Years Number of compounding periods…

Q: How much interest will be charged on P7,300 borrowed for three (3) years at a simple interest rate…

A: The simple interest method is a method where interest is calculated only on the principal amount…

Q: What's the present value of $18,544.86 discounted back 5 years if the appropriate interest rate is…

A: Note : We are choosing here the nearest answer provided in the question  ,else correct round off…

Q: What is the present value of £100 to be received 4 years from now if the interest rate is 4%? a)…

A: The present value of sum to be received in future can be calculated with the help of present value…

Q: 5) Determine the present value at time 0 of payments of $1,000 at the start of each month for 5…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: D) At a certain Interest rate the present value of the following two payment patterns are equal. (i)…

A: Interest rate is the rate earned on any investment. It is also referred to as Annual Percentage rate…

Q: At a certain interest rate the present values of the following two payment patterns are equal: (i)…

A: Payment 1: $350 at the end of 4 years plus $250 at the end of 11 yearsPayment 2: $500 at the end of…

Q: Q6. A debt of $ 5700 is due, with interest at a = 8% in three years. It is agreed that the loan will…

A: Loan is a value which is borrowed from other sources for a particular time and person have to repay…

Q: What would the future value of $125 be after 8 years at 8.5% compound interest? a. $205.83 b.…

A: To caculate the future value we will use the below formula   Future value = P*(1+r)n Where P -…

Q: What is the present value of $ 1, 552.90 due in 10 years at (1) a 12 percent discount rate and (2) a…

A: Computation:

Q: At an annual effective interest rate of 5%, the present vakue of a perpetuity immediate with…

A: Perpetuity , in finance, would mean a constant flow of similar or identical  amount of cash  for an…

Q: With an interest rate of 4 percent, the present value of $100 received three years from now is…

A: Present Value is the current price of future value which will be received in near future at some…

Q: ind the future value of an ordinary annuity of Php 6, 500 payable quarterly for 5 years if the…

A: The future value of annuity is the value of all the payments at a specific date in the future.

Q: Q6. What's the present value of a perpetutity that pays $1,524 per year if the aprropriate interest…

A: The objective of the question is to calculate the present value of a perpetuity. A perpetuity is an…

Q: 11. Compute the current value of a 5-year $7,000 annuity starting in 5 years' time; assuming…

A: The objective of this question is to calculate the present value of an annuity that starts in the…

Q: With an interest rate of 8 percent, the present value of $100 received two years from now is…

A: Present Value is the current price of future value which will be received in near future at some…

Q: 5.  Find the present value of quarterly payments of P1000.oo that start at the end of 3 ¼   years…

A: Quarterly payment (P) = P1000.00 Interest rate = 16% Quarterly interest rate (r) = 0.16/4 = 0.04…

Q: What is the present value of $1,500 due in 14 years at a 5 percent interest rate

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: What is the future value of $2,575 per year for 17 years at an interest rate of 6.69 percent?…

A: This is a case of an annuity.   Annuity refers to a stream of constant and periodic cash flows.

Q: At an annual effective interest rate of 5%, an annuity immediate with 4N level annual payments of…

A: A future quantity of money or a series of cash flows' current value, discounted to account for time…

Q: Q5. At 5% annual interest, what is the difference in the present and future value of P100 paid at…

A: Given, Annual interest rate is 5% Payment made is P100 term is 10 years

Q: An interest rate is 7.50% per annum with continuous compounding. What is the equivalent rate with 6…

A: Interest rate (r) = 7.50% Compounding = Continous Mathematics constant (e) =…

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.