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 person plans to make equal monthly deposits into this account for 20 years at the rate of 6%…

A: Present Value of annuity refers to the value of regular cash flows or payments at equal intervals at…

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: Two payments of $5,000 are to be received four and eight months from now. a. What is the combined…

A: Present value is the equivalent today of the future payments that are going to be received in the…

Q: What equal payments in 3 years and 5 years would replace payments of $47,500 and $72,500 in 6 years…

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

Q: If money is worth 8% annually, what annual payment is required to raise ₱ 18,811 after 2 years if…

A: Future Value of Annuity Due = (1 + r) x P x [{(1 + r)^n} - 1] / r

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: w much will be in an account at the end of five years the amount deposited today is $10,000 and…

A: The given problem can be solved using FV function in excel. FV function computes  future value for…

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: What payment, made at the end of each year for 11 years, will accumulate to $14,500 at 6% compounded…

A: Here the effective annual rate (ear) will be computed first.EAR = (1+(given rate/m))^m-1Given rate…

Q: A payment of $11,335 is due in 3 year, $18,000 is due in 4 years, and $8,850 is due in 6 years. What…

A: The present value of a future amount is calculated using the following formula,

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: What amount 1.5 years from now is equivalent to $ 7000 due in 8 years, if money can earn 6.2%…

A: Time period=1.5 years Future Value (FV) = $7000 Interest rate (r)= 6.2% compounded semiannually…

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: d) You expect to make 12 semi-annual payments of $ 5,000 each at the rate of return of 5%…

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

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: What is the final amount of $2696 payable every three months for 5 years and 9 months, if money is…

A: Here, Quarterly Payment is P2696 Time Period is 5 years and 9 months Time Period in Quarters  (n)…

Q: You have a financial goal of $140,000. The rate is 3% compounded annually. The time is 16 years.…

A: Formula to calculate annual periodic deposit Annuity=FV *r[(1+r)n-1] Where, FV = Future value r =…

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: Compute to the penny the present value of $5,000 dollars to be paid at the end of four years if (a)…

A: Future value is a financial concept that refers to the projected value of an investment or asset at…

Q: Find the interest rate needed for the sinking fund to reach the required amount. Assume that the…

A: Compound = Quarterly = 4Future Value = fv = $19,654Time = nper = 4 * 4 = 16Payment = pmt =…

Q: How much will be in an account at the end of five years the amount deposited today is $10,000 and…

A: The given problem can be solved using FV function in exceL. FV function computes amount BALANCE in…

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: 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: If you contribute $1000.00 into an RRSP every six months for fifteen years and interest on the…

A: GIVEN, pmt =$1000 NPER = 15 X 2 =30 RATE = 8%2=4% PV=0

Q: Find the lump sum deposited today that will yield the same total amount as payments of $15,000 at…

A: Answer -   Formula for Lump Sum deposited Today -  P = R ( 1 - (1+i)-n/ i)

Q: For 10 years with total payments of $ 10000 per year, calculate the total amount accumulated after…

A: Total payment per year = $10,000 = P Time period = 10 years = n  Annual interest rate = 20% = R…

Q: If money is worth 9% compounded quarterly, find the amount of an annuity of P2,000 payable every 3…

A: Quarterly payment (Q) = P 2000 r = 9% per annum = 2.25% per quarter n = 10 years = 40 payments We…

Q: If money is worth 8% compounded quarterly, find the present value of 12 quarterly payments of P1,…

A: The rate of interest is 8% compounded quarterly. The payment made for 12 quarters. the each payment…

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.