What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs semiannually? Quarterly?     a.      The future value of $500 invested at 8 percent for one year     b.     The future value of $500 invested at 8 percent for five years   c.      The present value of $500 to be received in one year when the opportunity cost rate is 8 percent     d.     The present value of $500 to be received in five years when the opportunity cost rate is 8 percent

Q: hat is the future value of 15 periodic payments of $26,000 each made at the end of each period and…

A: Future values of payments includes the principal payment and payment of interest and present value…

Q: Using 12 percent simple interest per year, how much interest will be owed on aloan of $500 at the…

A: Interest Rate(R) = 12 Loan Amount(P)=$500 Years(T) = 2

Q: What is the future value in five years of $1,000 invested in an account with an APR of 10 percent,…

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

Q: What is the future value of $550 invested for 5 years at 15 percent compounded annually?

A: Following details are given in the question: Present value (Investment today) = $550 Time period = 5…

Q: What is the future value of $100 after 5 years under 12 percent annual compounding?

A: Time value of money is a concept that helps in determining the value of cash (or money) at a future…

Q: What is the effective annual rate of interest if $1100.00 grows to $1400.00 in four years compounded…

A: Principal amount (initial investment) (P)= $ 1100Future value of investment (FV) = $1400Number of…

Q: What is the present value of $2,100 to be received 14 years from now assuming a discount rate of…

A: Given information: Future value of amount is $2,100 Number of years is 14 Discount rate is 3.7% for…

Q: What is the future value of a stream of receipts that is $1,000 in year 1 and which increases by 4%…

A: The future value of this stream of receipts can be calculated using the future value of an annuity…

Q: What would be the future value of $7,992 invested annually for nine years beginning one year from…

A: future value formula: future value =A×1+rn-1r where, A=annuity r=rate of interest n=number of years

Q: What is the present value of $30 to be received at the beginning of each year for the next five…

A: Present Value of annuity due = pmt*[1-(1/(1+r)^n)/r]*(1+r) Where, Pmt = yearly payment i.e. $30 r…

Q: A sum of money invested now at 10 percent compounded semi-annually is to provide payments of $1500…

A: Let the money to be invested now = X Semiannual payment (A) = $1500 Number of payments (n) = 16 r =…

Q: nual, semiannual, and quarterly compunding periods, (1) calculate the future value if $5000 is…

A: Future value can be computed using FV function in excel. FV function computes interest rate for…

Q: If the current rate of interest is 10% and interest is compounded semiannually, what is the present…

A: Compound = Semiannually = 2Interest Rate = r = 10 / 2 = 5%Future Value = fv = $10,000Time = t = 7 *…

Q: What annual interest rate must be obtained to accumulate $10,000 in 8 years on an investment of…

A: The interest rate is compounding quarterly. Hence, it is important to understand that, annual rate…

Q: What is the future value of $2,520 in 12 years assuming an interest rate of 9.35 percent compounded…

A: Present  value = $2,520Number of years = 12Number of times compounded per year = 2…

Q: What is the present value of a stream of $800 cash payments, each to be made at the end of the next…

A: Given:

Q: What is the future value of $400 in 15 years assuming an interest rate of 14 percent compounded…

A: Today deposit=$400Period=n=15 years=30 semi annual periodsInterest rate=14%Semi annual rate=r=7%

Q: What is the present value of $2,450 to be received in five (5) years if the opportunity cost rate is…

A: The provided information are: Future value (FV) = $2450 Number of years (n) = 5 Rate (r) = 9 Rate is…

Q: Find the future value in five years of an investment of $115,000 made today that earns 7.00 percent…

A: Future value = Investment * [ 1 + ( rate / Frequency ) ]years * frequency Future value for…

Q: The future value of $500 to be received at the end of each year for seven years at adiscount rate of…

A: Computation of future value:Therefore, the future value is $4,461.40.

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: Here, Principal Amount (PV) is $13,000 Annual Interest Rate (r) is 3% Compounding Period (m) is…

Q: Which of the given interest rates and compounding periods would provide the best investment? (a) 10…

A: Given: Interest rate 10 1/2 percent per year, Interest rate 10 1/4 percent per year, Interest rate…

Q: What is the future value of $1000 after 4 years under 10% annual compounding? Semiannual…

A: Future value refers to the worth of the present sum or a series of cash flows at a future date. It…

Q: What is the future value of $5,000 deposited for four years compounded atan annual rate of 10…

A: Annual Compounding       Interest rate  10.00%   Period (NPER)  4   Present Value 5000…

Q: at is the future value of $750.00 received today and deposited at 8% per year for 10 years with…

A: Future value of the amount is the amount being deposited and amount of interest accumulated over the…

Q: What is the future value of $1,200 in 20 years at an APR of 8.00 percent compounded semiannually?

A: The amount can be calculated with the help of future value function

Q: What is the future value of $8,000 a year for 40 years at 11.8 percent interest, compounded…

A: Future value can be calculated usingFV (rate, nper, pmt, [Pv], [type])Rate The interest rateNper…

Q: What is the present value of an annual payment of $9,500 discounted back 8 years at an annual rate…

A: given, A=$9500 r=3% n=8

Q: 1. Calculate the present value of $8,000 receive five years from today if your investment pay a. 6…

A: Using excel PV function

Q: What is the future value in 2 years if you invest $100 at the beginning of each month for 12 months…

A: Future value of money includes the amount of deposit being made and the amount of compounded…

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.