What is the present value of $2,000 received today,  $2,500 received at the end of each of the next ten years and $1,000 received at the end of the 11th year , assuming a required rate of return of 6%?

Q: What is the present value of $1,000 paid at the end of each of the next 56 years if the interest…

A: Present value is the current worth of the amount deposited or received in future date.

Q: What is the future value of a property at the end of 5 years whose present value is currently…

A: Future Value is the value at some future time of a present amount of money, or a series of payments,…

Q: What present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually?…

A: Present Value = Future value / (1+r)^n Where, r = rate of interest i.e. 8% n = no. of years i.e. 20…

Q: What is the future value in five years of $1,000 invested in an account with an APR of 10 percent,…

A: The FV of an investment refers to the combined worth of the cash flows of the investment at a future…

Q: Rank the following from highest present value to lowest present value. Assume they all have the same…

A: Lets assume that the rate of interest is 10% Lump sum - $1000 Time – 10 yrs r- 10% Present Value…

Q: What is the future value of $550 invested for 5 years at 15 percent compounded annually?

A: Following details are given in the question: Present value (Investment today) = $550 Time period = 5…

Q: find the future value of 5,000 invested in each of the following situation 5 percent for ten years?…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: What is the future value of $100 after 5 years under 12 percent annual compounding?

A: Time value of money is a concept that helps in determining the value of cash (or money) at a future…

Q: If the cost of capital is 12%, what is the present value of a perpetuity that pays $11,000 at the…

A: The present value of perpetuity can be calculated as ratio of cash flows and the discount rate

Q: A perpetuity with a present value of $25,000 today yields cash flows of $100 per month. The first…

A: Perpetuity involves receiving cash flow for an infinite period of time. Perpetuity calculation can…

Q: What is the IRR for a $980 investment that returns $205 at the end of 6 years?

A: Internal rate of return: IRR  of a project is the discount rate which makes net present value of the…

Q: What amount must be set aside now to generate payments of $30,000 at the beginning of each year for…

A: Annual payment (P) = $30,000 Interest rate (r) = 5.52% Period (n) = 10 Years

Q: Find the present value of the following future amount. $300,000 at 12% compounded semiannually for…

A: Present Value refers to a concept that states the discounted value or say value at today's time of…

Q: What present value amounts to $25,000 if it is invested for 20 years at 5% compounded annually?…

A: Solution Concept The interest rate compounded annually means the interest is charged on interest and…

Q: Determine the future values if $25,000 is invested in each of the following situations: a. 8% for 20…

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

Q: You receive annual payments of $4,800 at the beginning of each year for 7 years. The discount rate…

A: The total value of yearly payments at a particular date in future for a given discount rate is…

Q: Suppose that a stream of equal payments of amount $25000 per year is to continue in perpetuity. At…

A: Given information: Equal payments (C): $25,000 Interest rate (r) :10% We have to compute the value…

Q: What is the present value of $30 to be received at the beginning of each year for the next five…

A: Present Value of annuity due = pmt*[1-(1/(1+r)^n)/r]*(1+r) Where, Pmt = yearly payment i.e. $30 r…

Q: What is the value today of $68,599 that will be received at the end of 13 year(s) having earned an…

A: The present value of the money to be received in the future is the future value discounted at the…

Q: If the current rate of interest is 10% and interest is compounded semiannually, what is the present…

A: Compound = Semiannually = 2Interest Rate = r = 10 / 2 = 5%Future Value = fv = $10,000Time = t = 7 *…

Q: PR, compounded daily, is needed to grow a present value of $250 to $500

A: The APR is annual percentage in this nominal interest rate is considered and this is not effective…

Q: A perpetuity with a present value of $60,000 today yields cash flows of $1,200 per quarter. The…

A: Solution: An equal amount received for a perpetual period, is called perpetuity.  So, present value…

Q: What is the present value of a $120,000 cash flow to be received at the beginning of each of the…

A: Amount  of Cash flow = $120000 at the beginning of the year Years(n) = 20 Annual rate(r) = 9%…

Q: the present value of using an interest rate of 5%, a. By successive computations, using the present…

A: When considering the opportunity cost of having money now rather than later, present value indicates…

Q: Use the present value formula to determine the amount to be invested now, or the present value…

A: The amount needed now can be calculated with the help of present value function

Q: To calculate the value today of receiving $1,000 each year for the next 10 years, you would use…

A: The present value computation establishes the current value of a future payment stream. An annuity…

Q: An investment will provide after-tax revenue of $22,336 per year for 7 years. What is the present…

A: After tax revenue (P) of $22,336 for a period (n) of 7 years will be received. Present value annuity…

Q: N practically speaking defines "forever!

A: *Answer:

Q: What is the future value of a property at the end of 12 years whose present value is currently…

A: To calculate the future value we will use the below  formula   Future value = PV*(1+(r/m))(n*m)…

Q: nd the present value that will generate the future value of $1,000 at 7% compounded yearly for 7…

A: Using excel PV function

Q: Use the present value formula to determine the amount to be invested​ now, or the present value…

A: Present value is the value of an asset in today’s time. It the value which is worth today. It helps…

Q: Find the present value of the following annuities: 1. 100 at time 1 and increasing by 100 annually…

A: 1.                                                  Computation of present value of annuity Year…

Q: If 400,000 is deposited at the rate of 6% compounded annually at the beginning of each period for 6…

A: The Future value of annuity due is the total future value of each cash flow which is made at the…

Q: The future value of $500 to be received at the end of each year for seven years at adiscount rate of…

A: Computation of future value:Therefore, the future value is $4,461.40.

Q: will receive $1000 two years from today, and at the end of each subsequent year, you will receive an…

A: In perpetuity there are payments forever and there is no break of the payments in perpetuity.

Q: Find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The…

A: The formula used for calculating G is:

Q: What is the future value of $5,000 deposited for four years compounded atan annual rate of 10…

A: Annual Compounding       Interest rate  10.00%   Period (NPER)  4   Present Value 5000…

Q: A perpetuity with a present value of $80,000 today yields cash flows of $2,500 per quarter. The…

A: For an unlimited amount of time, the stream of cash flows that continues is known as perpetuity. A…

Q: Future value) To what amount will ​$4,900 invested for 9 years at 11 percent compounded annually…

A: Future value will be reflective of the value of present investment in future after compounding it…

Q: What APR, compounded monthly, is needed to grow a present value of $250 to $500 over 6 years?

A: As per the information provided: Present value (PV) - $250 Future value (FV) - $500 Period - 6 years…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.