With a present value of $130,000, what is the size of the withdrawals that can be made at the end of each quarter for the next 10 years if money is worth 6.2%, compounded quarterly? (Round your answer to the nearest cent.) $

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: If $600 is invested in an account with an annual interest rate of 14.5%, compounded continuously,…

A: We need to use the formula of continuous compounding belowA=P(e)rn  where   A=future valueP=present…

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: If you invest $5,000 now, and your investment pays 12% per annum, how much will you have in three…

A: Following information is given in the question: Investment today (Present value) = $5000 Annual…

Q: money is worth 7.3%, compounded quarterly?

A: Present Value of future cash flow means the cash flows discounted at a given rate of return. FV*…

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: 2. What is the future worth of P600 deposited at the end of every quarter for 4 years if the…

A: The value of an asset at a specific date is referred to as its future value. It is the present value…

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: annually

A: Formula to calculate r: r = (FV/PV)^1/n - 1

Q: f you wish to save $875,000 in three years, how much would you need to deposit at the start of each…

A: Principal amount invested to save $ 875000 is $ $ 744,941 so to start depositing at the beginning of…

Q: If you have $4500 to invest now, and will need a total of $25,000 -- 10 years from now, determine…

A: Amount available now (PV) = $4500 Period = 10 Years Monthly period (n) = 10*12 = 120 Interest rate =…

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: Suppose that you deposit $200 at the end of each month into an account paying an expected annual…

A: given, monthly compounding N    =10 x 12 = 120I    =3%12PV   =0PMT =200   FV    = need to find

Q: What is the PV of the perpetuity paying $5 each month, beginning this month, if the monthly interest…

A: Here, Monthly Payment is $5 Monthly Interest Rate is 0.5% Monthly Growth Rate is 0.1%

Q: Find the present value of $10,000 if interest is paid at a rate of 9% per year, compounded anually…

A: The provided information are: Future value (FV) = $10,000 Rate of interest (r) = 9% = 0.09 Time…

Q: Currently, you have $30,000 that you would like to grow to $97,000 within the next 6 years. Assuming…

A: The concept of TVM refers to the interest-earning capacity of money which makes money earned earlier…

Q: At what annual interest rate, compounded annually, would $520 have to be invested for it to grow to…

A: Future Value is that value which includes the interest earned and initial invested amount. It is…

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: What is the present equivalent of $ 180,000 to be received in 15 years when the interest rate is 7%…

A: Time value of money (TVM) means that the amount of money received in the present period will…

Q: Using the figure above, calculate the future worth (at the end of year 10) of a cash flow series of…

A: Future Value of annuity due is the annuity in which payment is made at the beginning of the period…

Q: At an interest rate of 8% per year, $50,000 today is equivalent to how much a year from now?

A: Future value refers to the value of an asset or cash at a specified time in the future. It is based…

Q: What payment ten years from now is equivalent to P1,800 six years from now if the interest is 16%…

A: solution : a) interest rate =16% compounded annually 0 - 1 - 2 - 3 - 4…

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: What is the present value of 24 monthly cashflows of $420 each starting today if the interest rate…

A: Using excel PV function, This is question of annuity due since cashflow starting today

Q: You will deposit $2,000 per year for the next 10 years. Then, you will start drawing money out of…

A: Future value is the value of the present cash flows in future. Investor will deposit same equal…

Q: Which of the following is not an established method of translation? O a. Forward method O b.…

A: If a business entity operates in other countries, different currencies are used for reporting the…

Q: ROUND ALL ANSWERS TO NEAREST DOLLAR How much will $10,000 grow to in 3 years, assuming an Interest…

A: Note: Since you have specifically used question number 10 to get solved, so we are solving the same…

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: The present value of $100,000 that are expected at the end of one year, at an interest rate(discount…

A: We need to use present value formula below to calculate present value of expected future…

Q: If $19,000 is invested at 5% compounded quarterly, what is the amount after 9 years? The amount…

A: Given: Present value = $19,000 Interest rate = 5% Years = 9

Q: What present amount of money must be deposited at 11% interest compounded annually to grow to…

A: Formula to calculate compound interest is: A = P(1+r/n)^nt Where A is the future value, P is the…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.