What is the present value of a 6% investment that would pay P30,000 annually perpetually?

Q: What is the present value of £100, growing at 2% per year, to be received every year forever, if the…

A: The present value of a growing perpetuity can be calculated as the sum of all discounted cash flows…

Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $2,000 monthly?

A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…

Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…

A: To calculate the present value we will use the below formula   Present value = FV/[1+(r/m)]n*m Where…

Q: How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the…

A: We have the following information: Annuity: $24,000 Rate of Interest: 5%

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: A firm is scheduled to receive payment of $68,000 in 2 years.  What is the present value of this…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: What is the present value of an ordinay annuity if its value at the end of 10 years is Php 50,000?…

A: To calculate the present value we will use the below formula   Present value = FV/(1+r/m)(n*m) Where…

Q: What is the present value of an $800 perpetuity if the interest rate is 8%? If interest rates…

A: Present value of perpetual cash flows is computed by following formula:-PV = wherePV = Present value…

Q: The stock price of Alps Co. is $54.80. Investors require a return of 14 percent on similar stocks.…

A: Stock price is $54.80 Required return is 14% Dividend next year is $4.05   To Find: Expected growth…

Q: Give an annual opportunity cost of 10%,what is the future value of a $3,000 ordinary annuity for 10…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: sent value of a perpetuity with interest rate of 7.5% is $150,000. What is the annual cash flow amou

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: What is the future value of a $1000 deposit made today, in 7 years, if r = 10% APR compounded…

A: The time value of money is used to determine the future value and present value of any amount given.…

Q: What is the future equivalent of 10,000 per year that flows continously for 8.5 years if the nominal…

A: The following information has been provided in the question: Present value= 10000 per year Time =8.5…

Q: should be invested now into an 8% per annum interest-bearing account, compounded ye

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: What is the future value of a 6%, 10-year ordinary annuity that pays $200 each year?  If this were…

A: The future value of annuity is calculated using the formula below:

Q: What is the final value of $20, 000 if left in an account that pays 10% interest per annum for 30…

A: The final amount after 20 years will be the future value of the initial deposit.

Q: product is to be paid perpetually for P10,551 at the rate of 1%. How much is the present worth of…

A: Perpetuity : A perpetuity can be described as an infinite flow of cash that are equal at a rate of…

Q: A firm is scheduled to receive payment of $32,000 in 2 years.  What is the present value of this…

A: Present value of future cash flow can be calculated as follows: = Future Value/ (1 + rate)^number of…

Q: return of 12% per ar

A: The worth of a present asset at a future date based on an estimated rate of growth is known as…

Q: What is the final value of $20,000 if left in an account that pays 10% interest per annum for 30…

A: Using excel FV function

Q: How long will it take for an investment to increase by 139% its amount if money is worth 14% comp.…

A: Given, Amount will be 139% at the end of the period  So, Let's assume amount now is 100 amount at…

Q: a) What is the duration of a perpetuity with a yield of 8%?

A: Yield (r) = 8% Perpetuity duration is found using following formula:

Q: Compute the present value of a perpetual investment that would pay P25,000 every year if the…

A: To calculate the present value we will use the present value of perpetuity formula as follows:…

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: What is the future value of a perpetuity with annual payments of $1,000 compounding at 10%

A: Payment = p = $1000Interest Rate = r = 10%

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: What’s the present value of a perpetuity that pays Php250 per year if the appropriate interest rate…

A: In finance, the time value of money concept states that the money available today is considered…

Q: What is the present value of an investment that promises to pay you $ 1, 000 in five years if you…

A: Here, The present value is PV. The future value is FV. The maturity is n. The interest rate is r.

Q: How long will it take for an investment to double in value if it earns 5% compounded continuously?

A: Continuously compounded interest rate is the interest which is calculated on the principal amount as…

Q: How many years will it take for P200,000 to double at a simple interest rate of 16%?

A: As per Simple Interest : Future Value = Principal Amount + Interest

Q: What is the present value of £100 to be received every year forever, starting next year if the…

A: Cash inflow in year 1 = £100 Interest rate = 20%

Q: How should the $70,000 be allocated to each alternative to maximize annual return? What is the…

A: As per the given information: Investment amount - $70,000 Return on instruments: Municipal bonds -…

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: How long will 2 million pesos earn a simple interest of 200,000 at 1% per annum

A: No of years = Amount required to be earnedSimple Interest per annum

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.