What is the future value of a property at the end of 5 years whose present value is currently $425,000 and is expected to appreciate at 9% per year (compounded annually)?

Q: What present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually?…

A: Present Value = Future value / (1+r)^n Where, r = rate of interest i.e. 8% n = no. of years i.e. 20…

Q: At what annual interest​ rate, compounded​ annually, would ​$500 have to be invested for it to grow…

A: FV = A * (1+r)nwhereFV = future valueA = amount investedr = interest raten = time period

Q: What is the present value if $200 to be received 8 years from now if money in hand can be invested…

A: present value if $200 to be received 8 years from now if money in hand can be invested at 12% can be…

Q: What is the accumulated value of the 5000 TL investment at the end of each year with 3% interest…

A: The accumulated value is calculated as future value of annuity

Q: If the cost of capital is 12%, what is the present value of a perpetuity that pays $11,000 at the…

A: The present value of perpetuity can be calculated as ratio of cash flows and the discount rate

Q: what is the present value of 54,000 paid at the end of each of the next 96 years if the interest…

A: Yearly Payment (P) = 54,000Number of years (n) = 96Interest rate (r) = 3% or 0.03We can use the…

Q: What is the IRR for a $980 investment that returns $205 at the end of 6 years?

A: Internal rate of return: IRR  of a project is the discount rate which makes net present value of the…

Q: A. Assume that you have $7500 to invest. You plan to invest it for 10 years at a rate of 7% per…

A: Future Value = Present Value * (1 + Interest Rate)^Time

Q: What present value amounts to $25,000 if it is invested for 20 years at 5% compounded annually?…

A: Solution Concept The interest rate compounded annually means the interest is charged on interest and…

Q: What is the value today of $68,599 that will be received at the end of 13 year(s) having earned an…

A: The present value of the money to be received in the future is the future value discounted at the…

Q: PR, compounded daily, is needed to grow a present value of $250 to $500

A: The APR is annual percentage in this nominal interest rate is considered and this is not effective…

Q: What is the present value of $2,000 received today,  $2,500 received at the end of each of the next…

A: Present value of cashflow for any year = Cashflow for that year/(1+ discount rate)^time Cashflow for…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: To calculate the present value we will use the below formula   Present value = FV/(1-d)n Where FV -…

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: If TNT Corp.invests $50,835 now and it will receive $100,000 at the end of 10 years, what annual…

A: The time value of money (TVM) is the idea that an amount of money is worth more right now than it…

Q: What is the future value of a property at the end of 12 years whose present value is currently…

A: To calculate the future value we will use the below  formula   Future value = PV*(1+(r/m))(n*m)…

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: You anticipate an improvement on your property will require replacement in 9 years. How should rent…

A: Cost of improvement of $45,000 is the present value (PV) of the rent (P) to be increased. Interest…

Q: What is the present worth difference between an investment of $15,000 per year for 35 years and an…

A: Present worth is calculated by discounting the future cash flow by the discounting rate.   Present…

Q: At an interest rate of 11%, what is the present value of an asset that produces $2,400 a year in…

A: Data given: Cash flow=$2400 Rate=11%

Q: how much will a single investment of $10,000 be worth in 10 years

A: Time value of money(TVM) means that the amount of money received in the present period will have…

Q: If the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000…

A: The question is based on the concept of future value calculation of annuity payment, by use of…

Q: If money is invested at 6% per year, after approximately how many years will the interest earned be…

A: The time value of money is the concept that money available today is worth more than the same amount…

Q: How much is an asset with expected annual cashflows of $19,000 for 11 years worth today, if the…

A: Present value considers the time value of money concept. It considers the discounting factor at…

Q: What is the present value of $250,000.00, 10 years from now @ 6%?

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

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 IRR for a ​$1500 investment that returns ​$300 at the end of each of the next a.7 years?…

A: IRR of a project is the discount rate which makes net present value of the project equals to zero.…

Q: What APR, compounded monthly, is needed to grow a present value of $250 to $500 over 6 years?

A: As per the information provided: Present value (PV) - $250 Future value (FV) - $500 Period - 6 years…

Q: What must the annual earnings be from a new piece of equipment that costs $10 million and has a…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

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.