xplain why this statement is true: a dollar in hand today wis worth more than a dollar to be received next year. provide relevant examples to support your explainati
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explain why this statement is true: a dollar in hand today wis worth more than a dollar to be received next year. provide relevant examples to support your explaination
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- Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what is the present value of $16,491.00 (rounded to the nearest dollar) to be received at the end of each of the next four years, assuming an earnings rate of 12%? a.$59,450 b.$16,491 c.$50,083 d.$39,611 Use these present value tables to answer the question that follow. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a…Using the present and future value tables in Appendix A, the appropriate calculations on the Garman/Forgue companion website, or a financial calculator, calculate the following: The amount a person would need to deposit today to be able to withdraw $10,000 each year for ten years from an account earning 6 percent. Round your answer to the nearest whole dollar. Round Present Value of Series of Equal Amounts in intermediate calculations to four decimal places. $ A person is offered a gift of $4,800 now or $8,000 five years from now. If such funds could be expected to earn 5 percent over the next five years, which is the better choice? Round Future Value of a Single Amount in intermediate calculations to four decimal places. A person wants to have $1,000 available to spend on an overseas trip four years from now. If such funds could be expected to earn 7 percent, how much should be invested in a lump sum to realize the $1,000 when needed? Round your answer to the nearest whole…Suppose a husband wants to take his wife on a trip three years from now to Europe to celebrate their 40th anniversary. He has just received a $20,000 inheritance from an uncle and intends to invest it for the trip. The husband estimates the trip will cost $26,600. What interest rate, compounded annually, must be earned to accumulate enough to pay for the trip? Note: Use tables, Excel, or a financial calculator
- Hi, How do i solve this corporate finance problem using a formula or financial calculator. The present value of an annuity making annual payments of $3,200 starting 8 years from today is$13,465.99. If the fund earns 10.5%/year (effective), how many annual payments (in whole years) of$3,200 can be made?2. The following are exercises in present values: a. $100 at the end of three years is worth how much today, assuming a discount rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent? b. What is the aggregate present value of $500 received at the end of each of the next three years, assuming a discount rate of (i) 4 percent? (ii) 25 percent? C. $100 is received at the end of one year, $500 at the end of two years, and $1,000 at the end of three years. What is the aggregate present value of these receipts, assuming a discount rate of (i) 4 percent? (ii) 25 percent? d. $1,000 is to be received at the end of one year, $500 at the end of two years, and $100 at the end of three years. What is the aggregate present value of these receipts assum- ing a discount rate of (i) 4 percent? (ii) 25 percent? e. Compare your solutions in Part (c) with those in Part (d) and explain the reason for the differences.How much must be deposited today into the following account in order to have a $135,000 college fund in 11 years? Assume no additional deposits are made. An account with quarterly compounding and an APR of 7.32% $ should be deposited today. (Do not round until the final answer. Then round to the nearest cent as needed.) Enter your answer in the answer box. Type here to search 0 哥 同
- The present value of a single sum is equal to the amount that, if invested today at the specified discount rate, would return the value of the single sum every year for a specified number of years. Select one: O True O FalseSimple interest. Explain using excel please (step by step). If you deposited $48,250 at what %, would you accumulate an amount of $67,156.25 in seven years?What would be the value of an asset that returns a cash flow of $100 in each of the next five years starting one year from now and $200 per year in years six through ten?
- Assume you deposit $1,000 in your savings account. Performance a sensitivity analysis on the relationship between future value at the end of year 10 and interest rate. Plot the relationship on a chart and label the graph clearlyPlease refer to the formulas in the lesson and on the following website. Pay particular attention to the examples. Scroll to the bottom to review a table with a list of various formula arrangements that may be helpful in completing this assignment. 1) If you deposit $4,000 today in a bank account and the interest is compounded annually at 10 percent, what will be the value of this investment: a. five years from now? b. ten years from now? c. fifteen years from now? d. twenty years from now? 2) If a business manager deposits $12,000 in a savings account at the end of each year for twenty years, what will be the value of her investment: a. at a compounded rate of 12 percent? b. at a compounded rate of 18 percent? 3) The chief financial officer of a home health agency needs to determine the present value of a $60,000 investment received at the end of year 15. What is the present value if the discount rate is 5%? 4) After completing her residency, an obstetrician plans to invest $9,000…Time Value of Money: BasicsUsing the equations and tables in Appendix 12A of this chapter, determine the answers to each of the following independent situations. Round answers to the nearest whole number.(a) The future value in three years of $1,000 deposited today in a savings account with interest compounded annually at 8 percent.$ Answer(b) The present value of $5,000 to be received in five years, discounted at 10 percent.$ Answer(c) The present value of an annuity of $9,000 per year for six years discounted at 10 percent.$ Answer(d) An initial investment of $14,904 is to be returned in eight equal annual payments. Determine the amount of each payment if the interest rate is 12 percent.$ Answer(e) A proposed investment will provide cash flows of $50,000, $10,000, and $7,000 at the end of Years 1, 2, and 3, respectively. Using a discount rate of 20 percent, determine the present value of these cash flows.Year 1 $ AnswerYear 2 $ AnswerYear 3 $ Answer(f) Find the present value of an…
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