What is the present value of 10 equal payments of $21,000 to be made at the end of each year for the next 10 years? The annualinterest rate is 10 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)Note: Use appropriate factor(s) from the tables provided. Round your answer to the nearest whole dollar.Present value

Computation of present value:Present value = Cash outflows * PVAF@10% for 10 yearsPresent Value =…

Answered: What is the present value of 10 equal…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Complete the following using present value. Amount $6,600, Time 10 years, Rate 2%, Compounded semiannually. What is the period used? What is the rate used? What PV factor used? What is the desired end of period amount?
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Keith Riggins expects an investment of $125,473.50 to return $15,000 annually for several years. If Riggins earns a return of 10%, how many annual payments will he receive? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Present Value Annuity Payment = ון Table Factor Annual Payments payments
Question: What is the present value of $1000 to be paid in five years if the interest rate is 10%? (Note: you need to show time line and your solution)
Find the future value FV of the given present value. (Round your answer to the nearest cent.) Present value of $12,410 at 5 7 8 % for 670 days
need complete and correct answer with proper explanation , computation formula and steps answer in text form
For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the future value factor. (1) In Table 1 (future value of 1): Number of Annual Rate Years Invested Compounded Case A 5% 5 Annually Case B 8% 6 Semiannually Case A Case B . (a) % % (2) In Table 2 (future value of an annuity of 1): Annual Rate Number of Years Invested Compounded Case A 6% 9 Annually Case B 8% 5 Semiannually Case A Case B (b) periods periods (a) (b) % periods % periods
I need the excel formula to calculate the amount of annual payment given that the interest rate is 7%, amount to be received at maturity is $25000, and the number of years is 10.
i. Find the annual payments for an ordinary annuity and an annuity due for 12 years with a PV of $1,000 and an interest rate of 10%. Round your answers to the nearest cent. Annual payment for ordinary annuity: $ Annual payment for annuity due: $ j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 10%. Year 1 Payment $100 2 $300 $500 3 Round your answers to the nearest cent. PV of investment: $ FV of investment: $ k. Five banks offer nominal rates of 9% on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily. Assume 365 days in a year. 1. What effective annual rate does each bank pay? If you deposit $3,000 in each bank today, how much will you have in each bank at the end of 1 year? 2 years? Round your answers to two decimal places. EAR FV after 1 year FV after 2 years Nominal rate $ $ Payment A A % B $ $ % B B C % $ 2. If the TVM is the only consideration, what nominal…
Find the present value of the following annuities: 100 starting at time 8 and increasing by 100 annually for 13 years (until time 20) if the effective rate is 8%
Suppose you invested $5,000 today. What would be the required interest rate to result in you having $20,886.24 at the end of 15 years. (Hint...use the CAGR formula). For your answer round to the nearest whole percentage and use the percentage symbol....e.g., 13% would be the form of a correct answer.

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