What is the present value of receiving $2,500 at the end of each year for 5 years, assuming 7% interest compounded annually? Please ideentify which table you used. Present Value of Annuity of $1Periods1.0%2.0%3.0%3.75%4.0%4.25%5.0%10.990100.980390.970870.963860.961540.959230.9523821.970401.941561.913471.892871.886091.879361.8594132.940992.883882.828612.788312.775092.761982.7232543.901973.807733.717103.651383.629903.608613.545954.853434.713464.579714.483264.451824.420734.329485.795485.601435.417195.285075.242145.199745.0756976.728196.471996.230286.057906.002055.946995.7863787.651687.325487.019696.802806.732746.663786.463219.8.566028.162247.786117.520777.435337.351357.10782109.471308.982598.530208.212798.110908.010897.72173 Present Value of $1Periods1.0%2.0%3.0%3.75%4.0%4.25%5.0%10.990100.980390.970870.963860.961540.959230.9523820.980300.961170.942600.929020.924560.920130.907030.970590.942320.915140.895440.889000.882620.8638440.960980.923850.888490.863070.854800.846630.822700.951470.905730.862610.831880.821930.812120.783536.0.942050.887970.837480.801810.790310.779010.7462270.932720.870560.813090.772830.759920.747250.7106880.923480.853490.789410.744900.730690.716790.676849.0.914340.836760.766420.717970.702590.687570.64461100.905290.820350.744090.692020.675560.659540.61391

Answered: What is the present value of receiving…

What is the present value of receiving $2,500 at the end of each year for 5 years, assuming 7% interest compounded annually? Please ideentify which table you used.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Find the present value of the given future payment at the specified interest rate. $520 due in five…

A: Time value of money is a financial concept which is used to calculate the value of money in present…

Q: What is the discounted value of payments of $38.00 made at the end of each year for 8 years if…

A: The time value of money is the foundational concept in finance which takes into account the effect…

Q: What is the future value of $118,000 invested for 5 years at 11% compounded monthly? (a) State the…

A: The future value of a single payment is only referred to as simple future value. An annuity requires…

Q: If the single payment present worth factor for 10 years is 0.30656. Determine the interest rate…

A: The present factor is the present value of $1 that has to be received/paid in the future.

Q: A perpetuity paying $1 at the beginning of each 6-month period has a present value of $20. Another…

A: Perpetuity is special kind of annuity in which there are payments forever and for infinite period…

Q: What is the present value of a cash payment of $1.2 that you will receive in 5.3 years if the…

A: STEP 1 Given a certain rate of return, present value (PV) is the current value of a future financial…

Q: f you were to put $1,000 in the bank each year for the next 10 years at 6% interest, which table…

A: Future value of $ 1: This table is used to calculate the future value of a single amount invested…

Q: Use the simple interest formula message to find the future value of an ordinary annuity of $3300…

A: An annuity is a payment series that provides the holder with future cash flows in exchange for a…

Q: What is the present value of a 8-year ordinary annuity with annual payments of $523, evaluated at a…

A: The PV of an annuity refers to the total value of its cash flows at present assuming they are…

Q: Determine the present value of a $3,500 perpetuity if the interest rate is 7%. If interest rates…

A: Given: Amount = $3,500 Interest rate = 7%

Q: The future value is $

A: Future value of Ordinary Annuity = = payment per period * [(1 + Interest rate) n - 1) /interest…

Q: If you borrow $15,500 with a 5 percent interest rate to be repaid in seven equal payments at the end…

A: Answer of the given question is below with the proper explanation. Note-final answer is rounded at…

Q: Suppose you invest in an annuity that pays 6% interest, compounded annually. You contribute $4,500…

A: Given information: Annuity payment is $4,500 Interest rate is 6% compounded annually Number of years…

Q: What is the difference in present value between a perpetuity that pays $500 per year and an ordinary…

A: Annual payment (A) = $500 n = 23 years for ordinary annuity r = 7%

Q: 1. Using simple interest computations, find the future value of $3,620 at 2 3/8% for six years (by…

A: Hi, since there are multiple questions posted, we will answer the first question. If you want any…

Q: What is the future value of $650 deposited for one year earning an 10 percent interest rate…

A: In the given question we require to calculate the future value of $650 deposited today for one year…

Q: What is the amount of an annuity that consists of 100 monthly payments of $250 into an account that…

A: Given: Periodic payment (P) =$250 Rate of interest per month = 5% annually Rate of interest monthly…

Q: Assume that you make quarterly payments of $ 475 into an annuity paying 3% interest compounded…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Calculate the future value after 3 years if $1,000 is deposited at 1.2% interest compounded monthly.

A: Calculate the future value after 3 years if $1,000 is deposited at 1.2% interest compounded…

Q: Complete the following using compound future value. (Round your answers to the nearest cent.)…

A: Here, Time period (NPER) = 15 years Principal amount (PV) = $16,300 Interest rate = 2% Compounded =…

Q: Find the future value of the annuity due. Assume that interest is compounded annually, unless…

A: Annuity refers to a series of regular cash flows over a defined period. When the cash flows occur at…

Q: What’s the interest rate of a 5-year, annual $4,800 annuity with present value of $20,000?

A: Given; Present value of annual payments : $20,000 Time period (r): 5 years Annuity: $4,800

Q: Compute the future value of annual payments of $1,000, paid for 4 years, using an interest rate of…

A: Future value can be defined as the future worth of the present cash flow that will be received from…

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: If money is worth 3 3/4% compounded quarterly, find the present value and the amount of an annuity…

A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…

Q: ity

A: of the annuity has to be found out, The payment is made in year 4 up to the 12th year, (9 times)…

Q: What is the present value of an ordinary annuity of $1,600 per year for 6 years discounted back to…

A: In the given question we require to compute the present value of ordinary annuity. Annuity payment =…

Q: Find the future value of an annuity of $1300 paid at the end of each year for 15 years, if interest…

A: Annuity is the payment of fixed amount at the end(ordinary) or beginning(due) of a financial period…

Q: 1. The annual rent of a perpetuity is $1000, payable in semi-annual stallments. Find the present…

A: The present value is the present worth of the amount that will be paid or received at present or…

Q: Find the present value of an ordinary annuity with deposits of $11,055 semiannually for 10 years at…

A: An annuity's present value is the current value, discounted at a certain rate, of a series of future…

Q: Suppose you are a beneficiary designated to immediately receive P8674 each year for 10 years,…

A: Annuity means a series of annual payments are being made or received. Annuity can be ordinary…

Q: Find the future value of an annuity of $1400 paid at the end of each year for 15 years, if interest…

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

Q: ind the future values and the int arned for the following annuities very 2 months for 1 year, 8 mont…

A: Future values of annuities include the amount deposited and the interest being accumulated over the…

Q: Find the future value of an annuity of $1500 paid at the end of each year for 10 years, if interest…

A: Calculation of future value of annuity: Answer: Future value of annuity is $20,724.67

Q: What sum deposited today at 5% compounded annually for 13 years will provide the same amount as…

A: A series of payment made at the end of each period with equal intervals of time is an ordinary…

Q: Calculate the amount of money that must be invested today for an individual to receive the future…

A: Information Provided: Period = 30 years Yearly payments = $3000 Future value = $250,000 Interest…

Question

What is the present value of receiving $2,500 at the end of each year for 5 years, assuming 7% interest compounded annually?

Please ideentify which table you used.

Present Value of Annuity of $1
Periods
1.0%
2.0%
3.0%
3.75%
4.0%
4.25%
5.0%
1
0.99010
0.98039
0.97087
0.96386
0.96154
0.95923
0.95238
2
1.97040
1.94156
1.91347
1.89287
1.88609
1.87936
1.85941
3
2.94099
2.88388
2.82861
2.78831
2.77509
2.76198
2.72325
4
3.90197
3.80773
3.71710
3.65138
3.62990
3.60861
3.54595
4.85343
4.71346
4.57971
4.48326
4.45182
4.42073
4.32948
5.79548
5.60143
5.41719
5.28507
5.24214
5.19974
5.07569
7
6.72819
6.47199
6.23028
6.05790
6.00205
5.94699
5.78637
8
7.65168
7.32548
7.01969
6.80280
6.73274
6.66378
6.46321
9.
8.56602
8.16224
7.78611
7.52077
7.43533
7.35135
7.10782
10
9.47130
8.98259
8.53020
8.21279
8.11090
8.01089
7.72173

Present Value of $1
Periods
1.0%
2.0%
3.0%
3.75%
4.0%
4.25%
5.0%
1
0.99010
0.98039
0.97087
0.96386
0.96154
0.95923
0.95238
2
0.98030
0.96117
0.94260
0.92902
0.92456
0.92013
0.90703
0.97059
0.94232
0.91514
0.89544
0.88900
0.88262
0.86384
4
0.96098
0.92385
0.88849
0.86307
0.85480
0.84663
0.82270
0.95147
0.90573
0.86261
0.83188
0.82193
0.81212
0.78353
6.
0.94205
0.88797
0.83748
0.80181
0.79031
0.77901
0.74622
7
0.93272
0.87056
0.81309
0.77283
0.75992
0.74725
0.71068
8
0.92348
0.85349
0.78941
0.74490
0.73069
0.71679
0.67684
9.
0.91434
0.83676
0.76642
0.71797
0.70259
0.68757
0.64461
10
0.90529
0.82035
0.74409
0.69202
0.67556
0.65954
0.61391

Expert Solution

Step 1

As it is the case of annuity due, thus, the first table will be used @7%, 5 years.

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

An annuity pays a fixed amount of $3,000 at the end of each of the next 5 years. Assume the interest rate is 8%. Use Excel, and list the time period (0, 1, 2, 3, 4, 5) and the amount $3,000. Then, Use Excel function to calculate the present value of the annuity.Use Excel function to calculate the future value of the annuity 5 years (enf of 5th year) from now.Submit the Excel file with all the details of time periods, amount of payment, and the Excel functions used to calculate the answers.
The present value of an annuity is given. Find the periodic payment. (Round your final answer to two decimal places.) Present value = $6200, and the interest rate is 7.2% compounded quarterly for 4 years.
Please help me
You will receive a cash payment of $7072 in 7 years. If the relevant interest rate is 19.89%, how much is it worth today? Round to 2 decimal places. Include dollar signs ($) and percents (%) as appropriate.
Use the formula for computing future value using compound interest to determine the value of an account at the end of 10 years if a principal amount of $19,000 is deposited in an account at an annual interest rate of 3% and the interest is compounded monthly.
Please answer with explanation. Asap
With an interest rate of 5 percent per year, what is the present value on December 31, 2020 of payments of $400 made on December 31 each year for the next 3 years starting in 2021? The present value on December 31, 2020 of payments of $400 on December 31 each year for the next 3 years starting in 2021 is $ d (answer to 1 decimal place).
Use the appropriate formula to find how much you should deposit now at 7% interest, compounded annually, to yield an annuity payment of $1,250 at the BEGINNING of each year, for 15 years.
What is the future value of $750.00 received today and deposited at 8% per year for 10 years with interest compounded semi-annually?
Find the future value of the following ordinary annuities. Payments are made and interest is compounded as given. R= $9000, 10% interest compounded annually for 5 years What is the future value of the ordinary annuity? (Round to the nearest cent.)
You purchased an annuity in which you deposit $100 a week at a fixed rate of 4% interest. What formula would you use to calculate its value at the end of 10 years? a = PMT(04/12, 12 120, 100) b. = FV * (04/12, 520, 100) c. = FV (.04/12, 10 * 52, -100) d = PMT(04/12, 12 120,,100)
What is the Present Value of $500 received in eight years with an interest rate of 8 percent? Please show formula as well