You have been told that you need $25,600 today in order to have $100,000 when you retire 35 years from now. What rate of interest was used in the present value computation? Assume interest is compounded annually. O A. 3.97 percent O B.4.15 percent OC. 4.29 percent O D.4.53 percent

Q: Find the present and future value of an income stream of $6000 per year for a period of 10 years if…

A: Present value (PV), also referred to as present discounted value, signifies the current value of a…

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: Future Value = Present Value x (1 + r)^n

Q: Current Attempt in Progress the present and future values of an income stream of $6000 a year for 25…

A: Income stream = $6000 Period = 25 years Interest rate = 4% compounded continuously

Q: Complete the following using compound future value. (Use the Table 12.1 provided.) Note: Round your…

A: time = 10 years principal = $17,100 rate = 4% compounded annually   Amount of Future Value = P *…

Q: Find the simple interest on a $2000 investment made for 5 years at an interest rate of 8% / year.…

A: Simple interest refers to the method of calculating interest earned on an investment where for each…

Q: Present value of an annuity Determine the present value of $190,000 to be received at the end of…

A: NPV (Net Present Value) is a financial metric used to evaluate the profitability of an investment by…

Q: Use the following amortization chart: Selling price of home  $77,000, Down payment  $5,000,…

A:

Q: 1. Using simple interest computations, find the future value of $3,620 at 2 3/8% for six years (by…

A: Hi, since there are multiple questions posted, we will answer the first question. If you want any…

Q: How much interest will be earned if $5,000.00 is invested for 3 years at 10% compounded semi-annual?…

A: Future value is computed by following formula-FV = A × (1+r)nwhere,FV = Future value A = Amount…

Q: Complete the following using compound future value. (Round your answers to the nearest cent.)…

A: Here, Time period (NPER) = 15 years Principal amount (PV) = $16,300 Interest rate = 2% Compounded =…

Q: Present value of an annuity Determine the present value of $110,000 to be received at the end of…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: If you invest $40,000 at 4% interest compounded annualy, approximately how much money will be in the…

A: PV=$40,000r=0.04n=6FV=?

Q: What amount of money deposited 70 years ago at 3% interest would provide a perpetual (i.e. infinite…

A: Perpetual Amount Formula = Annual Amount/ Interest rate  Annual Amount = $ 23,000 Interest Rate = 3%…

Q: Present value of an annuity Determine the present value of $200,000 to be received at the end of…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: If money is worth 1.07%, determine the present value of perpetuity of P 4.489 pavable annually, with…

A: Inputs Interest Rate = 1.07% Perpetual Amount = 4489 Payments will start at end of 5 years

Q: Calculate the future value of $2,000 in a. 3 years at an interest rate of 10% per year. b. 6 years…

A: Future value = Present value ×(1+pir) ^n Where,  Pir = Periodic interest rate n = number of periods…

Q: Calculate the future value of $5,000 in a. 4 years at an interest rate of 9% per year. b. 8 years at…

A: Step 1: Step 2: Step 3: Step 4:

Q: the present value of using an interest rate of 5%, a. By successive computations, using the present…

A: When considering the opportunity cost of having money now rather than later, present value indicates…

Q: Answer the following time value of money questions assuming the interest rate is 5 percent. a. What…

A: Present Value is the current price of future value which will be received in near future at some…

Q: What amount would you have if you deposited $2,100 a year for 40 years at 9 percent (compounded…

A: Annuity refers to the series of equal payments or receipts made at regular intervals for a…

Q: Find the compound amount and the amount of interest earned by the deposit below. $9,000 at 7.79%…

A: Deposit amount (P) = $9000 Interest rate (r) = 7.79% Period (t) = 3 years Mathematics constant (e) =…

Q: Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of…

A: Annual deposit for 3 years = $ 1000 Annual interest rate = 5% Future value period = 4 Years

Q: how much have you accumulated after 20 years?

A: An annuity is the receipt or payment of a fixed amount over a fixed interval of time for a specified…

Q: Present value of an annuity Determine the present value of $160,000 to be received at the end of…

A: Present value is the current worth of the future cash flows. To calculate present value, we discount…

Q: Suppose you borrowed $45,000 at a rate of 8.4% and must repay it in 5 equal installments at the end…

A: First we will calculate the amount of installment with the help of following formula Installment =…

Q: Present value of an annuity Determine the present value of $190,000 to be received at the end of…

A: Both of the above parts will give the same answers. Present value of annuity is the sum of the…

Q: Given below are the future value factors for 1 at 10% for one to five periods. Interest is…

A:

Q: Find the future value of and the compound interest on $100 invested at 4.7% compounded semi-annually…

A: Formula to be used: FV=PV * (1+rn)n*t where FV= Future value or accumulated value PV= Present value…

Q: With an interest rate of 4 percent, the present value of $100 received three years from now is…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Suppose you borrowed $50,000 at a rate of 8.1% and must repay it in 5 equal installments at the end…

A: Given ,Loan amount , Annual rate , r = 8.1% = 0.081Annual rate , r = 8.1% = 0.081number of…

Q: Time value You have $1,500 to invest today at 8% interest compounded annually. a. Find how much you…

A: (c)the interest earned is increasing for the same amount of time.This is because change in starting…

Q: With an interest rate of 8 percent, the present value of $100 received two years from now is…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Determine the present value of $110,000 to be received at the end of each of 4 years, using an…

A: Present Value (PV) is a financial concept that pertains to the valuation of future cash flows in…

Q: If Alvin invest 5500 to day in a saving account. The money will grow to 8500 at the end of the year…

A: The effective annual rate of the investment is 11.50%. So, 3rd option is the correct…

Q: If you deposited $10,000 each year for 10 years and the interest rate is 5.00%, what is the value at…

A: INFORMATION: RATE 5% YEARS 10 PMT (MONTHLY DEPOSIT) 10000 PRESENT VALUE $0

Q: You just deposited $6,300 in a retirement account and expect to earn an average return of 6.3…

A: Data given:PV=$6300Rate=6.3% (assumed annual compounding)n=30 yearsIf deposited  8 years…

Q: Present Value of an Annuity Determine the present value of $110,000 to be received at the end of…

A: Formula: Present value annuity = Yearly annuity amount x Annuity factor. Multiplying annuity factor…

Q: What is the present value of receiving $2,500 at the end of each year for 5 years, assuming 7%…

A: As it is the case of annuity due, thus, the first table will be used @7%, 5 years.

Q: Calculate the future value of $8,000 in a. 9 years at an interest rate of 9% per year. b. 18 years…

A: The future value (FV) of an investment is calculated using the formula:FV = PV * (1 + r)nwhere:FV is…

Q: Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t…

A: Future Value is that value which depend upon the present value and rate of interest which is earned…