wo payments of $16,000 and $6,800 are due in 1 year and 2 years, respec alculate the two equal payments that would replace these payments, mad nonths and in 4 years if money is worth 5% compounded quarterly. $0.00

Q: nil Two payments of $8,000 and $2,400 are due in 1 year and 2 years, respectively. Calculate the…

A: Present value is the equivalent value today of the future value and the present value of both…

Q: What equal payments in 3 years and 5 years would replace payments of $47,500 and $72,500 in 6 years…

A: The concept of time value of money will be used here. As per this concept money has the power to…

Q: What equal payments in 2 years and 5 years would replace payments of $ 37,500 and $97, 500 in 7…

A: Periodic payment refers to an amount that is being paid at every period including the interest and…

Q: A payment of $11,335 is due in 3 year, $18,000 is due in 4 years, and $8,850 is due in 6 years. What…

A: The present value of a future amount is calculated using the following formula,

Q: Two payments of $16,000 and $2,500 are due in 1 year and 2 years, respectively. Calculate the two…

A: Answer  Interest Yearly 10.5% Compound Quarterly Quarterly Interest Rate 10.5%/4   2.63%…

Q: Two payments of $18,000 and $3,700 are due in 1 year and 2 years, respectively. Calculate the two…

A: Compound interest is a type of the interest which is charged on the loan. Compound interest is…

Q: A payment of $2,800 is due in 2 years and $3,500 is due in 4 years. These two original payments are…

A: The concept of TVM refers to the interest-earning capacity of money because of which the amount…

Q: A payment of $2,800 is due in 2 years and $3,500 is due in 4 years. These two original payments are…

A: Present ValuePresent Value (PV) of a future amount is value of that amount in current time period.…

Q: At an annual effective interest rate of i, the following two payment streams have equal present…

A: Present value refers to the current value of a future sum of money or cash flow, discounted at a…

Q: (a) What is the amount of each payment? Round the answer to the nearest cent. P/Y =   C/Y =   N =…

A: First, we need to determine the loan amount using the formula below:

Q: aFV of $800 paid each 6 months for bFV of $400 paid each 3 months for 3 years a These uities receive…

A: The future value of an annuity refers to the accumulated value of its cash flows assuming they are…

Q: A payment of $11,050 is due in 1 year, $19,500 is due in 5 years, and $8,550 is due in 6 years. What…

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

Q: Can you please show me how we get the number, 1.242381   In this sum , A = $ 2,500 P = ? Time =…

A: Below is the extended calculation for better understanding: A=P×…

Q: being kompounded 25000$ is deposited in an account that pays 5% interest, semi-annually. Equal…

A: Here the 5% interest is compounded semi-annually and hence we will first have to find the effective…

Q: Two payments of $12,000 and & 3,400 are due in 1 year and 2 years, respectively. Calculate the two…

A: Discounting is a technique to compute present value (PV) of future cashflows by considering…

Q: What should be the amount in an RRSP that is earning 7.00% compounded quarterly if it can be…

A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…

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.