Answered: What is the present value if you can…

Business

Accounting

What is the present value if you can earn 8% interest compounded annually?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

See similar textbooks

Related questions

Q: Use the present value and future value tables to answer the following questions. A. If you would…

A: Since you have posted question with multiple sub parts, we shall be solving first three sub-parts…

Q: Find the future value, using the future value formula and a calculator. (Round your answer to the…

A: Future value is calculated using fv function in excel

Q: Calculate future value if you save $50,000 with a 6% interest rate for seven years. You must show…

A: Future value refers to the value of the current asset on some future date affected due to inflation…

Q: In this project, you will use a graphing calculator to compare savings plans. For instance, suppose…

A: The objective of this question is to compare the final amount of money you would have after one year…

Q: Present Value Computation You will receive $4,500 in 3 years. What is the present value if you can…

A: Present value = Amount*PV$1(n=3, i=8%)

Q: Use the present value and future value formulas to solve the following problems. Confirm your…

A: Please refer to the image below

Q: Use future or present value techniques to solve the following problems. Starting with $13,000,…

A: The Time Value of Money (TVM) is a fundamental financial concept that illustrates the idea that…

Q: 1. If you receive $29 each quarter for 19 years and the discount rate is 0.05, what is the present…

A: In this Question we are required to compute the Present Value of Cash flows received every quarter…

Q: What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is…

A: Present value : The financial concept used to establish the current valuation of future cash flows…

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

A: Principal =13000 interest rate =5% quarterly interest =1.25 Period 8 years =32 quarters

Q: 3. If you receive $98 each month for 12 months and the discount rate is 0.07, what is the present…

A: In this Question we require to calculate the Present Value of Cash flows that we will receive every…

Q: At the beginning of the year you deposit $3,000 in a savings account. How much will accumulate in 3…

A: Future value refers to the value of current assets at some future date on the basis of the assumed…

Q: What is the present worth of a future payment of $19,000 in year 7 if the interest rate is 10% per…

A: The present value of a cash flow is the current worth of a cash flow at a certain arte of interest…

Q: Financial Mathematics Please answer all parts of the question Suppose you will receive $50,000 in…

A: The concept of time value of money will be used and applied here. As per the concept of time value…

Q: Use the present value and future value tables to answer the following questions. A. If you would…

A: Future value = Present value * ( 1 + Ineterest rate )n

Q: Suppose you want to have $400,000 for retirement in 10 years. Your account earns 9% interest. Feel…

A: Compound = Monthly = 12Future Value = fv = $400,000Time = t = 10 * 12 = 120Interest Rate = r = 9 /…

Q: Find the present value, using the present value formula and a calculator. (Round your answer to the…

A: Present value = Future value/ (1+ (periodic interest rate× time))

Q: If you deposit $5000 into an account, how many years will it take for the account to be worth $9350…

A: A = $9350 P= $5000r = 8.25%

Q: Find the present value, using the present value formula and a calculator. (Round your answer to the…

A: Therefore, the present value is $6,313.60.

Q: Suppose you want to buy a vacant lot for your future home for $29,673. If your bank is willing to…

A: Amount of loan=$29673APR=6%Period=14yearsMonthly rate=r=0.5%Monthly periods=n=14 x 12=168

Q: Use the present value and future value formulas to solve the following problems. Confirm your…

A: Please refer to the image below.

Q: 4. If you receive $116 each month for 28 years and the discount rate is 0.08, what is the present…

A: This Question require to calculate the Present Value of Cash flows received every month for 28…

Q: 2. If you receive $99 each quarter for 17 years and the discount rate is 0.05, what is the future…

A: In this Question we require to calculate the Future Value of Cash flows that we will receive every…

Question

Present Value Computation
You will receive $2,500 in 3 years. What is the present value if you can earn 8% interest compounded annually?
Use Excel or a financial calculator for computation. Round your answer to nearest dollar.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Present Value ComputationYou will receive $4,500 in 3 years. What is the present value if you can earn 8% interest compounded annually?Use Excel or a financial calculator for computation. Round your answer to nearest dollar. $Answer
1. If you receive $176 each month for 12 months and the discount rate is 0.04, what is the future value? (show the process and can use financial calculator)
2. If you receive $99 each quarter for 17 years and the discount rate is 0.05, what is the future value? (show the process and can use financial calculator)
4. If you receive $116 each month for 28 years and the discount rate is 0.08, what is the present value? (show the process and can use financial calculator)
Answer the given question with a proper explanation and step-by-step solution. Please provide the answer using the math tool otherwise I give the downvote. Financial Mathematics Please answer all parts of the question Suppose you will receive $50,000 in 10 years time.a) What is the discount factor assuming quarterly compounding at 7% interest rate?b) What is the present value?c) What happens to the present value if the payment was to occur in five years?d) What happens to the present value if the interest rate was 8% instead?
5. If you receive $136 each 6 months for 3 years and the discount rate is 0.03, what is the future value? (show the process and can use financial calculator)
3. If you receive $98 each month for 12 months and the discount rate is 0.07, what is the present value? (show the process and can use financial calculator)
Find the future value, using the future value formula and a calculator. (Round your answer to the nearest cent.) $350 at 42% simple interest for 2 years $4 Need Help? Read It
Suppose you deposit $10 every week into an account that earns 4% interest compounded weekly. How much money (to the nearest cent) will you have in the account after 5 years? Summarize the information provided, stating the interest rate in a decimal form. d = r = N = k = Solve the problem and give your answer here
Find the future value, using the future value formula and a calculator. (Round your answer to the nearest cent.) $734 at 5.5% compounded quarterly for 7 years Need Help? Read It Watch It
Future Value ComputationAt the beginning of the year you deposit $3,000 in a savings account. How much will accumulate in 3 years if you earn 8% compounded annually?Use Excel or a financial calculator for computation. Round your answer to nearest dollar.
1. If you receive $29 each quarter for 19 years and the discount rate is 0.05, what is the present value? (show the process and can use financial calculator)