What is the present value of an investment that promises to pay you $ 1, 000 in five years if you can earn 6 percent interest compounded annually ? PV - Lump Sum

Q: Solve the above two cases (the cases are independent). What is the accounting rate of return?…

A: The projected worth of the initial investment after a certain amount of time, taking into account…

Q: What is the present value of $30,000 you will receive 7 years in the future, ass

A: The present value is equivalent value of money to be received today that will be equal to money to…

Q: fane has $1L025 and plan to purchase a 5-year certificate of degosit KD tht y interest, conmpounded…

A:

Q: which of the following investments that pay will $5000 in 12 years have a higher price today?

A: Present Value: It is the present worth of the future amount and the present value is computed by…

Q: 1- If you invested $10,000 in an investment account and you expect it to double in 4 years, what…

A: 1. Investment= $10000 time= 4 years

Q: How much you have in 3 1/2 years if you invests P8,000 at 6.6 percent interest compounded monthly?

A: We need to calculate the future value of the investment with the following inputs: Present Value =…

Q: Calculate the present value PV(n dollars) of an investment that w be worth $1,000 at the stated…

A: Present value (PV) is the current estimation of a future amount of cash or stream of income given a…

Q: A. Assume that you have $7500 to invest. You plan to invest it for 10 years at a rate of 7% per…

A: Future Value = Present Value * (1 + Interest Rate)^Time

Q: What is the future value of an ordinary annuity that pays $4,600 per year for 4 years? The…

A: Annuity = a = $4600Time = t = 4 YearsInterest Rate = r = 7%

Q: n investment will pay $150 at the end of each of the next 3 years, $300 at the end of Year 4, $600…

A: The value of money at present is known as the present worth of the money while the value of money…

Q: Suppose you are going to receive $5,000 per year for 8 years. The appropriate interest rate is 10…

A: PMT = $5000r =0.10n=8PV of ordinary annuity=?PV of annuity due=?

Q: Which will provide the largest yield on an annuity after 30 years with 6% annual interest,…

A: Given, N = 30 Years r = 6%

Q: If you invest 5000 dollars today at a compound interest rate of 9 percent, what will be its future…

A: FUTURE VALUE  FORMULA: FV= PV ×CVIFR,N FV = FUTURE VALUE PV = PRESENT VALUE

Q: 5-2 AFN Equation Martel Sporting Goods' sales are expected to increase by 15% from $17 million in…

A: To keep growth in sales there is need of investment in fixed assets and liabilities and that may be…

Q: A new investment opportunity for you is an annuity that pays $560 at the beginning of each year for…

A: Annual payment (P) = $560Interest rate (r) = 5.4% or 0.054Payment time = BeginningNumber of years…

Q: Assume you invest $15,000 today. How much will you have in five years at an interest rate of​ 10%?…

A: Future value is computed as: FV=PV1+rnwhere, FV =Future valuePV =Present valuer= rate of interestn=…

Q: What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per year? O…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: Tricorp Company is considering an investment that is expected to return $320,000 after four years.…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: A new investment opportunity for you is an annuity that pays $650 at the beginning of each year for…

A: An annuity is a financial product that provides a series of regular payments to an individual over a…

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: To calculate the present value we will use the below formula   Present value = FV/(1-d)n Where FV -…

Q: how much should you invest now in a single investment if you expect to withdraw $45,000 in 9 years…

A: Step 1: Introduction Present Value: The value of the money identified today for the money/sum of…

Q: What is the difference between simple interest and compound interest? Suppose you have $500 to…

A: Difference between Simple Interest and Compound interest Simple Interest is the interest that one…

Q: #2 - You expect to receive a payment of $1 million in a year. That annual interest rate is 5%. What…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: An investment offers $8800 per year for 14 years with the first payment occuring one year from now.…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: An investment opportunity requires a payment of $620 for 12 years, starting a year from today. If…

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

Q: If the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000…

A: The question is based on the concept of future value calculation of annuity payment, by use of…

Q: What is the maximum amount you should pay today for an investment that pays a single future cash…

A: Future cash flow (FV) = $25000 Interest rate = 2% Semi annual interest rate (r) = 2%/2 = 1% Period =…

Q: "You have just received a windfall from an investment you made in a friend's business. She will be…

A: Present value is the equivalent value of the future cash flow based on time value of money and…

Q: 5. An investment you are considering is expected to make payments annually forever. The amount of…

A: Data given: A= Payment = $4.75 (payment to be made annually forever) g=growth = 2.9% P0= Current…

Q: If you invest $10,000 today for 8 years, how much will the original investment be worth if…

A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…

Q: Question 1 Assume you are planning to invest $5,700 each year for six years and will earn 7% per…

A: Future value of annuity due means annual payment is invested at the beginning of each year. Future…

Q: What is the value of today of an investment that will pay $100 per year for 5 years. Assume first…

A: Present value of annuity is the present value of recurring cash flows with regular intervals at a…

Q: What would you pay for an investment that pays you $4300000 after twenty years? Assume that the…

A: Principal amount invested now will become certain amount after certain period of time at specific…

Q: What is the present value of ​$1,000 paid at the end of each of the next 100 years if the interest…

A: Payment = p = $1000Time = t = 100 YearsInterest rate = r = 4%

Q: What is the present value of $6,000 paid at the end of each of the next 87 years if the interes The…

A: Present value is today equivalent value of cash flows that are to be received in the future period…

Q: 4. How much will you need to invest today to receive $50,000 in 10 years, assuming an investment…

A: Given Information: Future value is $50,000 Rate is 3% compounded monthly Number of years 10

Q: Suppose you wish to have $17,250 in 5 years. Use the present value formula to find how much you…

A: Compound = semiannually = 2 Future value = fv = $17,250 Time = t = 5 * 2 = 10 Interest rate = r = 5…

Q: Future Value You invest $1,000 today and exect to sell the investment for $2,000 in 10 years.  a. Is…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: What is the future value of an annuity due that promises $60,000 per year for 10 years if the…

A: Annuity is regular payment to be made to investor. There are two types of annuities 1. Ordinary…