1.    On Bobby’s graduation from college, his uncle promised him a gift of $12,700 in cash or in payments of $830 every quarter for the next 5 years after graduation. Assume money could be invested at 8% compounded quarterly.       Calculate the present value of options.      Present value   Option 1 (the cash)    $      Option 2 (the present value of the stream of payments)    $

Q: Mark is looking to invest $7,500 today in a bank CD that will earn interest at 4.75 percent…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: If Taylor Greene invests a maximum of __________ today at a rate of 8.5%, then he will approve a…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Trent McDuffie plans on investing $50,000 every year for the next 11 years in an account that pays…

A: TVM refers to the capacity of money to earn interest because money earned earlier is considered more…

Q: Today, Thomas deposited $130,000 in a three year, 4% investment account that compounds quarterly…

A: Future value means the future worth of the money received or paid today. The future value is…

Q: Your brother has offered to give you either $35,000 today or $70,000 in 11 years. If the interest…

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

Q: Your brother has offered to give you either $65,000 today or $130,000 in 13 years. If the interest…

A: Solution: When an amount is receivable, every person will choose to receive higher amount. So, in…

Q: You have signed up for your 401k and will deposit $750 into your 401k when you are paid at the end…

A: Monthly deposit = p = $750 Interest rate = 6 / 12 = 0.5% Time = t = 15 * 12 = 180 months

Q: You have signed up for your 401k and will deposit $1,200 into your 401k when you are paid at the end…

A: Future value (FV) is the value of an investment or cash flow at a specific point in the future,…

Q: How much would you have at the end of 5 years if you choose to take the $ 6640 offer now, and you…

A: N = 5 years Investment = 6640 Interest rate = 5.8% compounded continuously

Q: Bill Swill decides to try his luck at Powerball where the projected winnings are $12,000,000. If he…

A: Given in the question:Interest Rate = 8%Time Frame = 20 YearsAmount of Winnings = $12,000,000In…

Q: Jerick McKinnon plans on receiving a retirement bonus of $ 3,000,000 in 3 years. If Jerick requires…

A: Retirement bonus = $3,000,000Number of years = 3Interest rate = 7.90%To find: The worth of…

Q: You are planning your retirement in 10 years. You currently have $164,000 in a bond account and…

A: TVM is the concept that considers money's interest-earning capacity, which makes money earned…

Q: Horry is depositing $979.34 into an investment account at the end of every month. After 5 yeors and…

A: Deposits means the amount paid by the person in a specific account or an investment. When a person…

Q: 3.1 Marcus was offered two options for a car he was purchasing: Lease option Pay lease amounts of…

A: using excel PV function, calculate the cost of car at time 0

Q: onpeu6 after graduation. Assume money could be invested at 8% compounded quarterly (Use Table

A: The formula for calculating the PV of a project is PV = A×1-1(1+i)ni where, A is the annual payment,…

Q: Acme Insurance is offering you a perpetuity that will pay you and your heirs $500,000 per year…

A: A perpetuity is a type of financial instrument or investment that provides a fixed stream of cash…

Q: 4. If an investor deposits $20,000 now, $10,000 two years from now and $5,000 per year for three…

A: The perpetual withdrawal beginning 12 years from now will depend upon the value of the investment at…

Q: Gil wants to have $8,750 in 10 years. Use the present value formula to calculate how much he should…

A: Compound = semiannually = 2 Future value = fv = $8750 Time = t = 10 * 2 = 20 Interest rate = r = 4 /…

Q: John Rebel opens a special investment account for a major future business purchase. He plans to make…

A: We have been given the accumulated amount at the end of 20 years, which is the future value of…

Q: 3) Angelo plans to invest an equal amount of $2,000 every six months beginning this year. The…

A: We have to calculate the future value of the annuity. There is a formula that can be used to…

Q: Using a financial calculator, solve for the unknowns in each of the following situations. (a) On…

A: Present value (PV) is a financial concept used to determine the current worth of a future sum of…

Q: You have just won the state lottery and have two choices for collecting your winnings. You can…

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

Q: 1.      Bobby Nelson wants to buy a used Jeep in 7 years. He estimates the Jeep will cost $17,000.…

A: future value  = present value*(1+rate)^n

Q: Just suppose your won a lottery of $1,000,000 and you have the option to receive it today or in 2…

A: Step 1 The value of a sum of money today is known as its present value.

Q: Jordan has $6000 to invest in an account from which he plans to make regula withdrawals over the…

A: Withdrawal that can be depend on the initial amount and interest rate and period of withdrawal and…

Q: What interest rate (the nearest percent) must Charlie earn on a $616000 investment today so that he…

A: The interest rate earned on the investment can be calculated with the help of future value function.…

Q: T-bill Return. Troy paid $18,881 for a one year T-bill with a face value of $20,000. What is Troy's…

A: Price  (P) = $ 18,881 Face value (F) = $ 20,000 Period (t) = 1 Year

Q: Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You…

A: purchasing price = $144,000 down payment = $17,000 loan amount = $144,000 - 17,000…

Q: You expect to receive $3.500 upon your graduation and will invest your windfall at an interest rate…

A: It can be calculated using=NPER(rate,pmt,pv,[fv],[type])Rate The interest rate for the loan.Nper…

Q: uppose you are 35 and have a $105,000 face amount, 15-year, limited-payment, participating policy…

A: Future value helps people and companies in making financial choices by evaluating the future growth…

Q: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest…

A: Based on the given information, The semi-annual interest rate = 6% Time period = 20 Amount = $500 We…

Q: Acme Insurance is offering you a perpetuity that will pay you and your heirs $150,000 per year. If…

A: A perpetuity is a type of financial instrument or investment that provides a fixed stream of cash…

Q: ou are required to two choose from two actions: A1: deposit K1 000 000 in the bank for 1 year at 7 %…

A: Future value of present amount With present value (PV), interest rate (r) and period (n), future…

Q: DJ has an investment that will pay him the following cash flows over the next 5 years: $2,250,…

A: Future Value = PV x (1+r)^n Where, PV = Present Value r = rate of return n = number of compounding

Q: 4. You would like to retire in 30 years with $1,000,000. Your financial advisor offers these two…

A: Concept. Future value of annuity = A ×[ (1+r)n -1 ] ÷r Where, A = timely payment  r = interest rate…

Q: Peter won a lottery and must decide among the following options: a. $260 at the beginning of every…

A: Present value represents the current value of the future stream of cash flow of investment.

Q: How much are the 2 million dollars received annually over the course of 25 years worth in terms of…

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: Suppose you are 35 and have a $105,000 face amount, 15-year, limited-payment, participating policy…

A: As per the given information:To determine:The net cost of insurance

Q: I need to have $440,000 in five years in order to retire. I can buy bonds that will pay a 8.8%…

A: FV = A * (1+r)n where , FV = future value A = amount of investment today r = interest rate n = time…

Q: You are planning on investing $3,000 every year for the next 5 years. You can earn 10% on your…

A: Capital budgeting, also known as investment appraisal, is the process by which companies evaluate…