You are planning to deposit in saving account $25000 three years from now, $35000 in the fourth year, and $45000 in six years. What is the current value of these saving at a discount rate of 7%?

Q: What is the present value of $30,000 you will receive 7 years in the future, ass

A: The present value is equivalent value of money to be received today that will be equal to money to…

Q: You expect to receive $100 at the end of each year that is a multiple of 2 or 3, so, for example,…

A: Annual amount = $100Number of years = Perpetual annuityDiscount rate = 10%To find: The value of the…

Q: What is the value today of $1,500 per year, at a discount rate of 9 percent, if the first payment is…

A: The concept of money's time value reveals that any sum of money is worth more currently, than what…

Q: Calculate  time value of money : If I am to receive $10k in 5 years, given a 5% rate of return, what…

A: Time value of money helps the management for decision making. as the value of money, today is high…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: Interest rates are 10%. Suppose you deposit the PV (present value) of a 7 year, $5000 annuity in the…

A: An annuity is a cash flow that occurs in each period and the amount is fixed or constant.   In this…

Q: Calculate future value if you save $50,000 with a 6% interest rate for seven years. You must show…

A: Future value refers to the value of the current asset on some future date affected due to inflation…

Q: What is the present value of $12.200 to be received 4 years from today if the discount rate is 5…

A: Given Information: Amount to be received in future=$12.200 Number of years=4 Discount Rate=5%

Q: You will receive $4,000 three years from now. The discount rate is 10 percent.  a) What is the…

A: In the given question we need to compute the value of investment after two years and one year from…

Q: the discount rate is 7.6%, what would you be willing to pay for receiving a payment of $700 eve

A: Value of any annuity is the present value of cash flow from the annuity based on time and interest…

Q: You are given $200 each year starting next year and finishing in 15 years (t = 15). If the discount…

A: We need to use present value of annuity due formula to calculate present value of cash flows stream.…

Q: Suppose you are going to receive $5,000 per year for 8 years. The appropriate interest rate is 10…

A: PMT = $5000r =0.10n=8PV of ordinary annuity=?PV of annuity due=?

Q: What is the future value of a 6%, 10-year ordinary annuity that pays $200 each year?  If this were…

A: The future value of annuity is calculated using the formula below:

Q: What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…

A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…

Q: Wells Fargo offers a new savings product: You make the following payments over the next 5 years and…

A: Future value is computed by following formula:-FV = A*(1+r)nwhereFV = future valueA = amount…

Q: You are expecting to receive a payment of $5969 in 2 years and $9869 in 6 years. If the interest…

A: One of the useful concept used in finance is time value of money. It says that a dollar amount…

Q: Find the present value of an annuity stream in which the first payment of $268 is received 8 years…

A: Payment = p $268Time = t = 8 Number of Payment = n = 8Growth Rate = g = -4.5%Discount Rate = r =…

Q: Calculate the present value of this infinite future payment of $100

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: You will recieve $4000 three years from now. The discount rate is 10 percent.  c) What is the value…

A: We need use present value formula to solve this problem. Present Value =Future value/(1+r)n Where…

Q: What is the present value of $200 per year, at a discount rate of 18.25 percent, if the first…

A: Annuity Amount is $200 Discount Rate (r) is 18.25% First Payment is received is 6 years from now…

Q: The present value of a 4-year annuity is $47,000. The first annual cash flow occurs one year from…

A: The discount rate is 4.8%The present value of the annuity table of discount rate 4.8%.PeriodAnnuity…

Q: An annuity pays $11 per year for 100 years. what is the future value (PV) of this annuity at the end…

A: Using The Future value function in excel

Q: Suppose you expect to receive periodic payments of $1,500 at the end of 3, 5, 7, and 10 years from…

A: Given information,Discount rate: Payment in period 3, 5, 7 and 10: To calculate,Present value of the…

Q: What is the value today of $3,200 per year, at a discount rate of 10 percent, if the first payment…

A: First, we calculate the present value in year 5 of the annuity and then once again calculate the…

Q: what is the value of this annuity five years from now? What is the value three years from now? What…

A: An annuity is a series of payments which starts from 1st period and can end at any period, annuity…

Q: will receive $1000 two years from today, and at the end of each subsequent year, you will receive an…

A: In perpetuity there are payments forever and there is no break of the payments in perpetuity.

Q: Wells Fargo offers a new savings product: You make the following payments over the next 5 years and…

A: The FV of an investment refers to the cumulative worth of the investment's cash flows at a future…

Q: what is the value of the annuity today

A: We can determine the PV of annuity to year 3 and then discount it to year 0 using PV formula. r =…

Q: If you are expecting a settlement of $10000 at the end of each year for five years, how much this…

A: The question is based on the concept of calculation of present value of future annuity payment.…

Q: Suppose you are going to receive $11,000 per year for 8 years. The appropriate interest rate is 11…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: How much do you have to deposit today so that beginning 11 years from now you can withdraw ​$12,000…

A: Given, Amount that can be withdrawn from years 11 to 16 is $12000 Additional amount at end of 16 th…

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.