Two payments of $5,000 are to be received four and eight months from now. a. What is the combined equivalent value of the two payments today if money can earn 6%? b.if the rate of interest money can earn is 4%, what is the payments' combined equivalent value today?
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Two payments of $5,000 are to be received four and eight months from now. a. What is the combined equivalent value of the two payments today if money can earn 6%? b.if the rate of interest money can earn is 4%, what is the payments' combined equivalent value today?
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- A payment of $11,620 is due in 2 year, $17,500 is due in 5 years, and $8,350 is due in 7 years. What single equivalent payment made today would replace the three original payments? Assume that money earns 6.50% compounded monthly. Round to the nearest centWhat sum of money now is equivalent to $9500 three years later, if interest is 3% per 6-month period?3. A loan of $50,000 due in one year is to be repaid by three equal payments due today, six months from now, and one year from now. What is the amount of the equal payments if interest is 6.5% (simple interest) and the focal date is today?
- You are paid £4,000 annually for 6 years, with the first payment due in one year and the last payment due in 6 years. What is the present value of all these payments using an interest rate of 2%?A loan of $8000 will be discharged by a cash payment of $3200 now; $1800 at the end of 4 years; $600 at the end of 6 years, and the last payment at the end of 7 years. If money is worth 4% compounded annually, what is the size of the last payment?What is the value today of $4,800 per year, at a discount rate of 8 percent, if the first payment is received 7 years from today and the last payment is received 25 years from today?
- 2. You are comparing two annuities which offer monthly payments of $1,000 for five years and pay 1.0 percent interest per month. Annuity A will pay you on the first of each month while annuity B will pay you on the last day of each month. Which one of the following statements is correct concerning these two annuities?A. Both annuities have the same future value as of ten years from today.B. Both annuities are of equal value today.C. Annuity B has a higher present value than annuity AD. Annuity B is an annuity due.E.Annuity A has a higher future value than annuity B.Suppose that you will receive annual payments of $16,500 for a period of 10 years. The first payment will be made 6 years from now. If the interest rate is 7%, what is the present value of this stream of payments?Two payments of $7,500 each must be made three years and six years from now. If money can earn 8.4% compounded monthly, what single payment, four years from now, would be equivalent to the two scheduled payments?
- What is the value today of receiving six annual payments of $400,000, beginning one year from now, assuming a 10% discount rate?How much is the present sum is equivalent to a series of P1000 annual end-of year payments, if a total of 10 payments are made and interest is 6%?What is the value today of $1,500 per year, at a discount rate of 9 percent, if the first payment is received 9 years from now and the last payment is received 27 years from today? Give typing answer with explanation and conclusion