The value of business, currently priced at 100000 Ria is expected to increase by 20% a year. After how many years will it be worth 1 million Rial Find the value in 10 years' time

Q: An investment offers $12,000 per year for 20 years, with the first payment occurring one year from…

A: The time value of money concept holds the utmost relevance while determining the future value and…

Q: Your project will give you a rate of return of 100% over 15 years. Is this a lot or a little? How…

A: Effective Rate is real rate at which investment value will appreciate over a given period. It shows…

Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…

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

Q: The value of business, currently priced at 100000 Rial, is expected to increase by 20% a year.…

A: Given information: Current Price : 100,000 Rial Increase every year : 20%

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: What is the future value of a property at the end of 5 years whose present value is currently…

A: Future Value is the value at some future time of a present amount of money, or a series of payments,…

Q: an investment is expected to produce the cash flows of €800, €500 and €600 at the end of the new…

A: Net present value is a capital budgeting techniques which help in decision making on the basis of…

Q: You are looking at an investment that promises to pay $2000 per year forever! What is the value of…

A: A cash flow that goes on forever is called a perpetuity.Here the cash flow of $2000 per year forever…

Q: The current market value of a real estate lot in Quezon City is about ₱ 40,000 per square meter.…

A: Let the amount to be invested today = X Current market value per square meter = ₱ 40000 Inflation…

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: An investment offers $6,300 per year, with the first payment occurring one year from now. The…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: An investment product promises to pay $500 at the end of the fifth year (year 5), and the payment…

A: Perpetuity:It shows the present value of the cash flows which are payable at equal intervals…

Q: Assume you have $100,000 now. If you get an average annual return of 4%, how many years will it take…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per period i.e. 4%n = no. of…

Q: You buy a new piece of equipment for $11,778, and receive a cash inflow of $2,000 per year for 10…

A: Initial Investment is $11,778 Cash Inflow per year = $2,000 Time Period = 10 Years

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: Mr Lee’s investment now of 50,000 pesos yields 14,000pesos at the end of the 5th year, 34,000 pesos…

A: Investment = 50,000 pesos Yield after 5 years = 14000 pesos Yield after 8 years = 34000 pesos Yield…

Q: Suppose you have an investment offer that guarantees an average investment gain of $1,000 per year.…

A: The average rate of change describes the rate at which one quantity changes in relation to another.…

Q: What is the present value of receiving $4,000 per year for 10 years? Your annual required rate of…

A: It can be calculated using PV formula in excel PV (rate, nper, pmt, [Fv], [type]) Rate The interest…

Q: You invest in a project that generates fixed annual cashflows of $135 for 5 years beginning in 5…

A: In the above question we are required to find out the present value of annuity due.

Q: If Quail Company invests $50,000 today, it can expect to receive $10,000 at the end of each year for…

A: Net Present Value = Present value of cash inflows + Present value of salvage value - Initial…

Q: Tricorp Company is considering an investment that is expected to return $320,000 after four years.…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: What is the future value of $2000 per year for 5 years invested at 10%?

A: Annual value (A) = $2000 n = 5 years r = 10% We need to find the future value of annuity.

Q: What is the present value of a property now if its future value is predicted to be $7,500,000 at the…

A: Present value shows that the sum of money worth more today as compared to tomorrow. Numerous…

Q: The present value of $100,000 that are expected at the end of one year, at an interest rate(discount…

A: We need to use present value formula below to calculate present value of expected future…

Q: is the rate of return on an investment of $9210 if the investor will recieve $2000 each year for the…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: How many years will it take for $14,000 to grow to $43,000 if you can earn an average rate of 8.8%…

A: Given information: Future value of amount is $43,000 Present value is $14,000 Average rate is 8.8%

Q: You will recieve $4000 three years from now. The discount rate is 10 percent.  c) What is the value…

A: We need use present value formula to solve this problem. Present Value =Future value/(1+r)n Where…

Q: An investment offers $8800 per year for 14 years with the first payment occuring one year from now.…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

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: saver wants $100000 after 10 years and believes it is possible to earn an annual rate of 8% on…

A: Amount required = FV = $100,000No of years = nper = 10 yearsInterest rate = rate = 8%Yearly…

Q: What is the final value of $20,000 if left in an account that pays 10% interest per annum for 30…

A: Using excel FV function

Q: What will be the Value of 10000$ invested @10% p.a compounded monthly for 25 years?

A: Future value is the worth of a current sum of money after a specified time span, given a fixed…

Q: What is the future value of a stream of $800 annual payments worth to the investor at the end of 10…

A: The FV of an investment refers to the cumulative worth of the investment's cash flows at a future…

Q: A 10-year investment will pay $2,500 at the end of this year, and the payments will grow at a rate…

A: Answer: Given data, Future value = $2,500 Required rate of return = 15% Paymets grow @ 5% per year

Q: An asset costs $7 million today. It can generate a $2 million income every 6 years, starting from…

A: An investment's profitability or success over a given time period is assessed using the annual rate…

Q: Your company plans to invest $20,000 at the end of each year or years 1 through 5, The company will…

A: Present Value: It represents the present worth of the future amount and is computed by multiplying…

Q: e expected average rate of return in the next decade is 4%. What is the value of $60,000 ten years…

A: The value of assets increase with time and grows to larger amount over the period of time due to the…

Q: You plan to invest K10, 000 on the first day of every year for the next 6 years. If the interest…

A: The worth of a present asset at some point in the future, based on an assumed growth rate, is known…

Q: Mr Lee's investment now of 50,000 pesos yields 14,000pesos at the end of the 5th year, 34,000 pesos…

A: The rate of return can be found using the IRR Function in excel Cash flows can be laid out in the…

Q: You purchase an investment for $1,000. You expect it will increase in value at a rate of 9% per…

A: Initial Investment is $1,000 rate is 9% per yeat time period is 12 years   To Find:- Worth of…

Q: What is the value today of a money machine that will pay $1,507.00 per year for 10.00 years? Assume…

A: The concept of time value of money will be used here. To compute the future value we compound the…

Q: You are planning to purchase an investment today. The investment will pay you Rs. 13,000/= at the…

A: Time Value of money states that a dollar today will be worth more than a dollar sometime in the…

Q: You invest in a project that is expected to pay you $960 every year forever. If the first payment to…

A: We can determine the PV of the cash flow using the formula below:r = discount rate = 3.80% = 0.038

Q: What is the present value if the money become Php158, 900 after 5 years of investment using 11.2%…

A: The present value is the present worth of the amount that will be paid or received in the future.

Q: How much will you accumulate if you invest $800 a year for 10 years at a rate of 8% per year

A: Annuity refers to a stream of periodic cash flows that are usually constant or fixed. Here the…

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.