You will receive $1,000 forever starting from the end of next year. The account pays 10% compounded annually. What is the present value today? A. 1,000 B. 9,091 C. 10,000
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You will receive $1,000 forever starting from the end of next year. The account pays
10% compounded annually. What is the present value today?
A. 1,000
B. 9,091
C. 10,000
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- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?
- You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.You will receive $1,000 forever starting from the end of next year. The account pays 10% compounded annually. What is the present value today? A. 1,000 B. 9,091 C. 10,000For $5,000, you can purchase an ordinary annuity that will pay you $920.23 each year for 8 years. The compound annual return implied by this arrangement is closest to Select one: a. 10.5% b. 9.5% c. 10% d. 9%
- You will receive $1,000 forever starting from the end of year 2. The account pays 10% compounded annually. What is the present value today? 1,000 9,091 10,000You will receive a cash payment of $7554 in 8 years. If the relevant interest rate is 15.34%, how much is it worth today? Round to 2 decimal places. Include dollar signs ($) and percents (%) as appropriate.You found out that now you are going to receive payments of $9,000 for the next 11 years. You will receive these payments at the beginning of each year. The annual interest rate will remain constant at 11%. What is the present value of these payments? Round your answer to the nearest whole dollar. a.)$83,704 b.)$49,602 c.)$55,859 d.)$62,003
- Find the present worth of perpetuity of P 10,000 semi annually with an interest rate of 10% quarterly, if the first payment will be given after 5 years. O P 128,850 P 125,550 P 127,750 O P 126,650Compute the present value of a perpetuity that pays $6,744 annually given a required rate of return of 9 percent per annum. Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. Answer Question 4 Assume that you deposit $3,956 each year for the next 15 years into an account that pays 20 percent per annum. The first deposit will occur one year from today (that is, at t = 1) and the last deposit will occur 15 years from today (that is, at t = 15). How much money will be in the account 15 years from today? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.You expect to receive P1,000 at the end of each of the next 3 years. You will deposit these payments into an account which pays 10%, compounded semiannually. What is the future value of these payments, that is, the value at the end of the third year?