What is the future value of GH¢ 1,200 a year for 40 years at 8 percent interest? Assume annual compounding. #randomized O A. GH¢ 301,115 B. GH¢ 306,492 OC. GH¢ 310,868 D. GH¢ 342,908 O E. GH¢ 347,267

Q: What is the value today of $1,200 per year, at a discount rate of 9 percent, if the first payment is…

A: The concept of time value of money will be used here. Value today refers to present value. The cash…

Q: What is the present value (PV) of $40, 000 received ten years from now; assuming the interest rate…

A: The objective of this question is to calculate the present value of a future sum of money. In this…

Q: Find the present value of 30 annual payments of $3,500 per annum where the first payment is made 11…

A: Number of Payment = n = 30Payment = p = $3500Time = t = 10Discount Rate = r = 19%

Q: How much would you have to invest today to receive: Use Appendix B and Appendix D. (Round "PV…

A: Present value is the equivalent value of money today based on the time value of money that is going…

Q: What is the present value of $3,670 to be received at the beginning of each of 28 periods,…

A: Present value means the present worth of the money to be received or paid in the future…

Q: What is the value today of receiving $4,000 at the end of each year for the next 5 years, assuming…

A: Year Cash received Present value factor @ 8% Present value 1 4,000 0.926 3704 2 4,000 0.857 3428…

Q: Present Value of Amounts Due Assume that you are going to receive $620,000 in 10 years. The current…

A: a. Calculation of Present Value:Identify the future value to be received: $620,000Determine the…

Q: Calculate the Future Value of 5,000 SAR made at the end of each year for 25 years, with an interest…

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

Q: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?…

A: Future Value = PV × ( 1 + r )n where, PV = Present Value = $700 r = Interest Rate = 4% n = time…

Q: Complete the following using compound future value. (Use the Table 12.1 provided.) Note:Round your…

A: The compound future Value is calculated with the help of following formula  Compound Future Value =…

Q: Find the compound interest and future value. Do not round intermediate steps. Round your answers to…

A: Principal, PV = $875  Interest rate, r = 3% Number of compounding, n = 10    The future value is…

Q: Find the PV of a 26-year annuity-immediate with payments of 1, 2, 3, ..., 26 at an annual effective…

A: Present value is the current worth of the future payments at a given rate of return.

Q: Use the compound interest tables to answer the following questions. (Click here to access the PV…

A: The compound interest is a system of providing interest on the invested amount and the interest…

Q: What is the present value (PV) of $40, 000 received ten years from now; assuming the interest rate…

A: The objective of this question is to calculate the present value of a future sum of money. In this…

Q: Q6. What's the present value of a perpetutity that pays $1,524 per year if the aprropriate interest…

A: The objective of the question is to calculate the present value of a perpetuity. A perpetuity is an…

Q: 3 O Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round…

A: Details are provided below.Explanation:aFuture value of ordinary annuity is = P*((1+r)^n-1)/r "P" is…

Q: Valuation of Financial Instruments / Determine knowledge An annuity due pays $120,000 each year for…

A: To calculate the present value of an annuity due, we can use the given…

Q: What is the future value of $4,500 after 6 years if the nominal interest rate is 8.50% compounded…

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

Q: What is the future value of $2,575 per year for 17 years at an interest rate of 6.69 percent?…

A: This is a case of an annuity.   Annuity refers to a stream of constant and periodic cash flows.

Q: Find the missing values assuming continuously compounded interest. (Round your answers to two…

A: given, fv = $1600 n = 10 years doubling year (n) = 15

Q: Find the present value of 20 annual payments of $2,000 per annum where the first payment is made 14…

A: Present value refers to the current worth of a future sum of money or cash flow, given a specified…

Q: Find the discounted value at i,2 = 2.55 % of 43 seminual payments of $260 each, the first one due 30…

A: In the given case, we have to find the discounting value at i12 = 2.55% Semiannual payment of total…

Q: Investment X offers to pay you $5,800 per year for eight years, whereas Investment Y offers to pay…

A: An annuity refers to a stream of fixed cash flows received or paid periodically. The present value…

Q: If the interest rate is 6% and the loan amount is $10,000, how much interest would accumulate in two…

A: Solution:When an amount is borrowed, it can either be repaid in installments or as a lump sum…

Q: What's the present value of $18,500 discounted back 5 years if the appropriate interest rate is 9%,…

A: PV = FV / (1 + r / n)nt Where, PV = Present value FV = Future value r = Rate of interest…

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.