Two payments of $12,000 and & 3,400 are due in 1 year and 2 years, respectively. Calculate the two equal payments that would replace these paymemts, made in 9 months and in 4 years if money is worth 7% compounded quarterly.

Q: A payment of $750 is due in 2 years, and $5,100 is due in 4 years. What single payment made today…

A: The concept of TVM refers to the interest-earning capacity of money because of which the money…

Q: nil Two payments of $8,000 and $2,400 are due in 1 year and 2 years, respectively. Calculate the…

A: Present value is the equivalent value today of the future value and the present value of both…

Q: wo payments of $11,000 and $4,300 are due in 1 year and 2 years, respectively. Calculate the two…

A: Payment for 1 year = $11000Payment for 2 year = $4300Compounded = QuarterlyInterest Rate =

Q: Determine the equal payment series for 10 years that is equivalent to a payment series of $6,000 at…

A: Information Provided: Year 1 Payment = $6000 Decrease in yearly payment = $250 Interest rate = 5%…

Q: What equal payments in 2 years and 5 years would replace payments of $ 37,500 and $97, 500 in 7…

A: Periodic payment refers to an amount that is being paid at every period including the interest and…

Q: years. What single equivalent payment made today would replace the three original payments? Assume…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: Two payments of $18,000 and $3,700 are due in 1 year and 2 years, respectively. Calculate the two…

A: Compound interest is a type of the interest which is charged on the loan. Compound interest is…

Q: Payments of $4,000, $5,200 and $6,500 are due infourmonths, sixteen months and eighteen months…

A: In this we need to calculate all values after 1 year.

Q: A payment of $25,000 is due today. What three equal payments, one in 3 years, one in 5 years, and…

A: Present Value refers to a concept that states the discounted value or say value at today's time of…

Q: a series of 12 annual payments of $2400 is equivalent to three equal payments, one each at the end…

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

Q: A payment of $700 is due in 3 years, and $5,000 is due in 5 years. What single payment made today…

A: PV=FV11+rn=$70011+4.54×1004×3+$500011+4.54×1004×5=$612.062293+$3997.59977=$4609.66206=$4609.66

Q: Two payments of $14,000 and $3,400 are due in 1 year and 2 years, respectively. Calculate the two…

A: To replace the payments of different periods, we will first compute the NPV of payments to be…

Q: A payment of $17,000 is due in 1 year and $11,000 is due in 2 years. What two equal payments, one in…

A: Given : Annual interest rate is 3.25% So quarterly interest rate = 3.25/4 = 0.8125% We assume two…

Q: Scheduled payments of $825, $352, and $ 1045 are due in one year, four and a half years, and five…

A: The term equivalent payment considers the original amount along with the interest to date. The…

Q: Two payments of $7,500 each must be made three years and six years from now. If money can earn 8.4%…

A:

Q: wo payments of $16,000 and $6,800 are due in 1 year and 2 years, respec alculate the two equal…

A: Present value of money would give the required money today that is equivalent to future payment to…

Q: Determine the present value of 15 equal quarterly payments of P1,200 where the first payment starts…

A: Solution Concept To get the present value of the future values , we need to discount the future…

Q: ayment of$12,055is due in 2 year,$17,000is due in 4 years, and$8,400is due in 6 years. What single…

A: Present value is the equivalent value today of the future payments based on the time and interest…

Q: A series of 10 annual payments of Php 200, 000.00 is equivalent to two equal payments, one at the…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: What is the equal-payment series for 10 years that is equivalent to a payment series starting with…

A: Given information: Initial amount is $10,000 Decreases by $1,000 over 10 years Interest rate is 7%

Q: Scheduled payments of $1054, $789, and $508 are due in one-and-a-half years, four years, and six…

A: Here, Schedule payment (FV)  $1,054.00 Time period (NPER) 1.50 Schedule payment (FV)  $789.00…

Q: A payment of $23,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: Given That: P.V=$23000 Payment is done in 3 equal payment Rate of interest= 4.25% Duration= 6 years…

Q: Payments of $4,000, $5,200 and $6,500 are due in four months, sixteen months and eighteen months…

A:

Q: What is the future value of 24 periodic payments of $4,890 each made at the beginning of each period…

A: Future value: A nominal value of an asset or investment at a specific period with an assumed…

Q: A payment of $11,710 is due in 1 year, $19,500 is due in 4 years, and $8,400 is due in 6 years. What…

A: The screenshot of the above sheet along with formulas is given below for your reference. The Single…

Q: A loan of $4282 borrowed today is to be repaid in three equal installments due in one year, three…

A: A loan indicates the sum borrowed at a particular rate for a specified tenure with varied loan…

Q: What equal payments in 3 years and 4 years would replace payments of $32,500 and $62,500 in 7 years…

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

Q: Two payments of $11,000 and $7,500 are due in 1 year and 2 years, respectively. Calculate the two…

A: Present value of the two payments is determined and then equal payment amount at the end of 3 months…

Q: A scheduled payment of $3,500 due in one year is to be replaced with two payments: the first due in…

A: Scheduled payment in 1 year (12 months) (X) = $3500 Replacement payment 1 = R1 in 9 months…

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.