Q: You are scheduled to receive $44,000 in two years. When you receive it, you will invest it for 7…
A: Computation:
Q: An investment offers $12,000 per year for 20 years, with the first payment occurring one year from…
A: The time value of money concept holds the utmost relevance while determining the future value and…
Q: What present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually?…
A: Present Value = Future value / (1+r)^n Where, r = rate of interest i.e. 8% n = no. of years i.e. 20…
Q: How much will you have saved after 6 years by contributing $1,200 at the end of each year if you…
A:
Q: You can invest $ 35,000 today. This investment offers you a fixed annual return, computed monthly…
A: Perpetuity is the series of payments at fixed intervals for an infinite time period. The amount of…
Q: You will invest Php. 30,000 into an investment that will earn 10% every year for five years. How…
A: Investment (P) = Php. 30000 Interest rate (r) = 10% Period (t) = 5 Years
Q: If you have $10,000 today, and save $12,000 per quarter year at the end of the quarter while earning…
A: In the given question we need to compute the number of quarters required to accumulate $100000 if we…
Q: An investment will pay you $80,000 in 10 years. If the appropriate discount rate is 9 percent…
A: Calculation of Present value (PV):
Q: What single investment made today, earning 10 % annual interest, will be worth 10,000 TL at the end…
A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…
Q: In one year, a project will be worth $10,000. What is that project worth today assuming a discount…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: If you invest $15,000 every year and expect to increase your investment by 6% each year for the next…
A: Annual investment (A) = $15000 Growth rate (g) = 6% r = 7% n = 20 years
Q: How much will I have 8 years from now, if I will invest P10,300 at the end of each three months for…
A: Future value is the worth of any asset or any sum of money at a future date when such asset or money…
Q: You need 85,000 in 10 years. If you can earn .78 percent per month, how much will you have to…
A: Future value is 85,000 Time period is 10years or 10×12 = 120months Interest rate is 0.78% To Find:…
Q: Give an annual opportunity cost of 10%,what is the future value of a $3,000 ordinary annuity for 10…
A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
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: 1) What monthly nominal rate of return must his investment earn for him to achieve his goal? 2) If…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: In order to receive P12,000 at the end of three years and P10,000 at the end of five years, how much…
A: In the given given case it is assumed that compound interest mathod is used. Under compound interest…
Q: Suppose you were to receive $1,000 at the end of 10 years. If your opportunity rate is 10 percent,…
A: given, FV = $1000 N=10 R=10%
Q: What is the present value of your end-of-year investment of $1,000 per year, with the first cash…
A: According to the time value concept, the purchasing power of a sum of money today is more than the…
Q: Suppose that $4000 is invested each quarter, for the next 10 years. What is the future worth if the…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: You need $32,000 at the end of 10 years. If you can earn 0.625% per month, how much would you need…
A: A concept through which it is studied that the current worth of money is higher than its future…
Q: You have 30 years left until retirement and want to retire with $2 million. Your salary is paid…
A: Future value (FV) is the value of a cash flow at a certain time in the future based on an assumed…
Q: You want to save an amount of P100,000 at the end of 10 years. You are given 8% interest compounded…
A: Solved using Financial Calculator FV = 100,000 I/Y = 8/4% = 2% per quarter compound N= 10 *4 = 40…
Q: What will be the Value of 10000$ invested @10% p.a compounded monthly for 25 years?
A: Future value is the worth of a current sum of money after a specified time span, given a fixed…
Q: An investment will generate 10,000 a year for 25 years. If you can earn 10 percent on your funds and…
A: Present value of annuity=Annuity1-1+Interest rate-Time periodRate
Q: If you wish to accumulate $25,000 by the end of 5 years, how much would your annual payment be if…
A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…
Q: How much should you invest each month in order to have $800,000 if your rate of return is 7.5%…
A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…
Q: An investment will generate $10,000 a year for 25 years. If you can earn 10percent on your funds and…
A: Calculation of net present value of the investment at 10%
Q: If you invest $2000 now, and receive 3 yearly payments of $100 each year plus $2500 in the 3rd year,…
A: i) IRR is the discount rate at which Present Value of cashinflows is equal to Present Value of cash…
Q: If you pay $500 for an investment that returns $600 in 1 year, whatis your annual rate of return?…
A: Future value = Present Value * (1+r)^n Where, r = rate of interest n = no. of years
Q: If money is worth 10% yearly, compounded quarterly, what monthly savings is required monthly in…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: If you have an investment of $1000 that grows at a rate of 6%, compounded annually, how much will it…
A: The Future Value of this investment is computed to find the worth of the investment after 10 years.…
Q: what is the internal rate of return of $10,000 investment that yields an annual benefit of $2,400…
A: Using IRR function in excel
Q: 4. How much will you need to invest today to receive $50,000 in 10 years, assuming an investment…
A: Given Information: Future value is $50,000 Rate is 3% compounded monthly Number of years 10
Q: If you have $15,000 today, and save $13,000 per quarter year at the end of the quarter while earning…
A: In this question we need compute the time period (number of quarters) required to accumulate…
Q: If you save P1,000 a month for the next 10 ears, at 8% per year, compounded monthly. Dw much money…
A: We will use the concept of time value of money here. The concept states that worth of money changes…
Q: You are scheduled to receive $100,000 in three years. r is 8% What is the present value ?
A: Present value is the present worth of any sum of a money to be received in the future at a specified…
Q: How much would you have to invest today to receive a. $15,000 in 8 years at 10 percent? b. $20,000…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: How much money should you be willing to pay now for a guaranteed $500 per year for 10 years starting…
A: Present Value: It is the current worth of future amount of money at a given pace of return.
Q: What is the future value of $800 saved each year for 10 years at 8 percent?
A: In the given question we require to calculate the future value from following details: Investment…
Q: If you were to invest $2000 today and in return receive $450 anually for 6 years, what is your…
A: N=6 PMT=450 PV=2000 I=? 2000=450/(1+I)+450/(1+I)^2........+450/(1+I)^6
Q: What is the present value of $10,000 to be received 10 years from now if the interest rateis 5…
A: Compound interest to interest charged on amount which is sum of principal and interest of previous…
Q: If you purchase a parcel of land today for $25,000, and you expect it to appreciate 10 percent per…
A: In the given question we need to compute the worth of land after 10 years i.e. future value of land…
Q: you will receive $10,000 at the end of 15 years. How much is it worth if the discount rate is 12? If…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Step by step
Solved in 3 steps with 1 images
- What single investment made today, earning 10 % annual interest, will be worth $10,000 at the end of 3 years ? What is the present value of $10,000 to be received at the end of 3 years if the discount rate is 20% ?Suppose you plan to deposit $1000 into an account next year, and increase the deposit each year by 5%. How how much will you have in the account after 10 years if the account earns an effective annual return of 9.25%?If you pay $500 for an investment that returns $600 in 1 year, whatis your annual rate of return? (20%)
- Suppose you were to receive $1,000 at the end of 10 years. If your opportunity rate is 10 percent, what is the present value of this amount if interest is compounded (a) annually? (b) quarterly? (c) continuously?An investment will pay you $100,000 in 10 years. If the appropriate discount rate is 6 percent compounded daily, what is the present value?You will recieve $4000 three years from now. The discount rate is 10 percent. c) What is the value of your investment today?
- what is the internal rate of return of $10,000 investment that yields an annual benefit of $2,400 for 5 years?You want to have $500,000 by saving for the next 10 years. If the annual percentage rate is 12% per year, how much must you save monthlyYou will receive $1000 two years from today, and at the end of each subsequent year, you will receive an additional $1000 compared to the previous year indefinitely. If the discount rate is 10% compounded annually, what is the present value today? Show the main steps in your calculation.
- A saver wants $100000 after 10 years and believes it is possible to earn an annual rate of 8% on invested funds. How much must be invested annually if the expected yield is only 5%? Assume payments are at the end of each year.You are looking to invest your savings and want to earn a 10% annualized return. You can choose from the following three options:Project A: You will receive $100 at the end of two years.Project B: You will receive $50 at the end of one year and another $50 at the end of two years.Project C: You will receive $80 at the end of one year and another $20 at the end of two years.Calculate the present value of each option, which option should you pick?What is the present value of receiving $1,950 a year for 30 years if you expect a rate of return of 6% a year? $10,681 O$58,500 O $29,620 $26,841