What is the present value of a stream of 5 end-of-year annual cash receipts of $500 given a discount rate of 14%? (Round your final answers to 2 decimal places.) a. Use the appropriate table (Appendix C: Table 1, Table 2) to answer the above question. b. Use the appropriate built-in function in Excel to answer the above question. a. b. PV of annuity PV of annuity $ 1,716.50

What is the present value of a stream of 5 end-of-year annual cash receipts of $500 given a discount rate of 14%? (Round your final answers to 2 decimal places.) a. Use the appropriate table (Appendix C: Table 1, Table 2) to answer the above question. b. Use the appropriate built-in function in Excel to answer the above question. a. b. PV of annuity PV of annuity $ 1,716.50

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Take me to the text Fill in the blanks for each of the following independent scenarios (A-D). Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Scenario Annual Net Cash Flow Discount Rate Number of Payments Present Value of Annuity Factor Present Value of Annuity $ A $20,000.00 $ 10% 4.3553 B % 2 1.6901 $82,814.90 $ C $21,000.00 6% 7.3601 D $8,000.00 9% 4.4859 $35,887.20
Answer numbers: 1 to 6. Please show the solution. Computes for its ORDINARY ANNUITY
Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Payment $ 5,600 10,600 4,600 Annual Rate Interest Compounded Semiannually 9.0% 10.0% Quarterly 11.0% Annually Period Invested 3 years 2 years 5 years Present Value of Annuity
1. Basic concepts Finance, or financial management, requires the knowledge and precise use of the language of the field. Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Discounting Time value of money Amortized loan Ordinary annuity Annual percentage rate Annuity due Perpetuity Future value Amortization schedule Opportunity cost of funds Answer — Description A. A series of equal (constant) cash flows (receipts or payments) that are expected to continue forever. The name given to the amount to which a cash flow, or a series of cash flows, will grow over a given period of time when compounded at a given rate of interest. An interest rate that reflects the return…
An annuity pays $200 at the end of each period for 10 periods. Set up the CFs in an Excel spreadsheet. The current value of this stream of CFs is $1,544. What is the implied discount rate? Solve the problem using the following approaches: a. Use trial and error or Goal Seek in Excel (tab Data/What-if-Analysis). b. Use the excel built-in function RATE.
Part 1. On the right are six diagrams representing six different present and future value concepts stated on the left. Identify the diagrams with the concepts by writing the identifying letter of the diagram on the blank line at the left. Assume n = 4 and i = 8%. Concept Diagram of Concept 1. Future value of 1. $1 + a. 2. Present value of 1. 3. Future value of an annuity $1 $1 $1 $1 b. |- - - H due of 1. + 4. Future value of an ordinary annuity of 1. ? $1 $1 $1 $1 5. Present value of an ordinary c. + ---I annuity of 1. 6. Present value of an annuity $1 $1 $1 $1 d. + due of 1. $1 e. F $1 $1 $1 $1 f. H + + Part 2. For each of the Concepts above provide an explanation of what it represents and include an example for each of a use in financial reporting.
Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1, EVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. Annuity Payment $ 3,700 Annual Rate Interest Period Compounded Invested Future Value of Annuity 7.0% Semiannually 9 years 2. 6,700 8.0% Quarterly 5 years 3. 5,700 12.0% Annually 6 years
Determine the present value of the following single amounts. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) Future Amount 1. $ 33,000 2₁ $ 27,000 38,000 53,000 WN 3. $ 4. $ (= 4% 5% 12% 12% n= 10 18 20 12 Present Value
For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (/= interest rate, and n= number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) 1. $ 2 3 4. 15 Present Value Answer is complete but not entirely correct. Annuity Amount 2.200 145,000 190,000 72.523 45,787 8,784 558,865 480,945 520,000 240,000 8% 1.0% 9% 2.5% 10% n= 5 4 30 8 4
Q)You are given the future value of an annuity, A, the monthly payment, R, and the annual interest rate, r. Find the number of monthly payments, n. Round your answer to the nearest whole number if necessary.A = $4000; R = $70; r = 7% Solve it correctly not use excel
For each of the following annuities, calculate the present value. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Present Value Annuity Payment $ 2,750 $ 1,505 13,455 33,900 LA $ $ SA Years 7 9 16 30 Interest Rate 6 % 5 7 9
Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Annual Payment Rate $4,700 6.0 % 8.0 % 7,700 6,700 10.0 % Show Transcribed Text 1. 2. 3. Annuity Annual Payment Rate Interest Compounded Quarterly Annually Semiannually $ 5,700 Interest Compounded 8.0 % Quarterly 10,700 11.0% Annually 4,700 10.0 % Semiannually Period Invested 5 years 6 years 9 years Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) $ Period Invested 2 years 5 years 3 years Future Value of Annuity 172,892.28 Present Value of Annuity