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: With a 0.14 compounded semi annually, approximately how much money must be invested today in order…

A: Given information : Interest rate 14% Amount to be withdrawn $7,802 Time period (years) 7…

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: wo payments of $11,000 and $4,300 are due in 1 year and 2 years, respectively. Calculate the two…

A: Payment for 1 year = $11000Payment for 2 year = $4300Compounded = QuarterlyInterest Rate =

Q: 3. If money is worth 10% compounded quarterly, which of the following obligations is more valuable?…

A: To compare two options, firstly either the present value of the options is required to be calculated…

Q: Determine the equal payment series for 10 years that is equivalent to a payment series of $6,000 at…

A: Information Provided: Year 1 Payment = $6000 Decrease in yearly payment = $250 Interest rate = 5%…

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: unuing Periods Find the amount to which $550 will grow under each of the following conditions. Do…

A: The future value is the value of present investment in the future after incorporating the initial…

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: A money is compounded annually at the rate of 6%, find the present value of a sequence of 12…

A: Semiannual payment (C) = P300 Number of semiannual payment (n) = 12 Semiannual interest rate (r) =…

Q: A payment of $2,450 is due in 2 years and $3,300 is due in 4 years. These two original payments are…

A: A payment of $2450 is due in 2 years and $3300 is due in 4 years. These two original payments are to…

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: The present sum needed to provide for an annual withdrawal of $1,500 for 25 years beginning 5 years…

A: Annual withdrawal (P) = $ 1500 Number of annual withdrawal (n) = 25 First payment (t) = 5 years…

Q: Scheduled payments of $1077 due two years ago and $1263 due in four years are to be replaced by two…

A: The payments sometimes need to be replaced by other equal payments and that can be done based on the…

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: Q)Scheduled payments of $274 due three years ago and $683 due in six years are to be replaced by two…

A: Scheduled Payment =$274  in the year -3( 3 years before) We have to find a Replacement Payment for…

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 man bought an eqpt costing P200k payable in 6 years @ i = 16% compounded quarterly with an…

A: In this we have to calculate present value FACTOR and annual instalment.

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: $ 5000 is deposited in an account that earns 6% compounded continuously for 2 years. If this amount…

A: Using excel FV function

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…

Q: Find the Present Value of payments at the end of each year for 30 years if the first payment il $100…

A: The concept of time value of money will be used and applied here. As per the concept of time value…

Q: ayment of$12,055is due in 2 year,$17,000is due in 4 years, and$8,400is due in 6 years. What single…

A: Present value is the equivalent value today of the future payments based on the time and interest…

Q: Principal of 2500 OMR is invested for 3 years at rate 6.5%. Find the future value if the interest is…

A: As per time value of money concept, a sum of amount invested today will have more future value in…

Q: 5.  Find the present value of quarterly payments of P1000.oo that start at the end of 3 ¼   years…

A: Quarterly payment (P) = P1000.00 Interest rate = 16% Quarterly interest rate (r) = 0.16/4 = 0.04…

Q: In a series of semiannual payments of P2,500 each the first payment is due at the end of 4 years and…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: a.) Present Value of all payments. (Answer: 108,138.03) b.) Equivalent semi-annual payments.…

A: Information Provided: Discount rate = 12.15% First year = 11,085 Second year = 23,819 Third year =…

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.