Citra expects to receive RM50,000 in 2 years. Her opportunity cost is 10% compounded monthly. What is the sum worth to Citra today?

Q: Assume that the trip will cost $26,600. What interest rate, compounded annually, must be earned to…

A: FV = PV * (1+r)nwhereFV = future value of amountPV = Present value of amountr = interest raten =…

Q: If the opportunity cost rate is 8% and is compounded annually, what is the present value of Php…

A: Present value of future value is the equivalent value of money today considering the interest rate…

Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…

A: To calculate the present value we will use the below formula   Present value = FV/[1+(r/m)]n*m Where…

Q: The ZLC consulting firm just signed an agreement to provide services to another firm.  In doing so,…

A: Here, To Find: Total Present Value of agreement =?

Q: If Magui will invest her money today worth 500,000 in JMC Mining company, how much is the expected…

A: The net income from the investment is the appreciation in the initial investment by the investor. It…

Q: A man's investment of P100,000 is expected to yield a regular income of P25,000 per year for 10…

A: Solution:- Benefit cost ratio means the ratio of present value of benefits from a project to present…

Q: A new engineer wants to save up P1,000,000. He will contribute P5,000 annually to an investment…

A: Introduction:- The devotion of an asset to achieve a gain in value through time is referred to as an…

Q: An investment product promises to pay you PHP20,000 in dividends every year forever. What is the…

A: Perpetuity means infinite no. of payments which are same in size or can be grown with constant rate,…

Q: What is the IRR of an investment that costs $70,500 and pays $27,500 a year for 4 years?

A:

Q: If you invest $3000 today at 7% per year, how much will it be worth in 30 years? PLEASE SHOW WORK IN…

A: The objective of the question is to calculate the future value of an investment of $3000 at an…

Q: How much was initially invested if the value of the investment is at P200,000 after 3 and a half…

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

Q: Roughly how many years would urn $1,000 into $16,000 if you can invest the money at 9% per year,…

A: Time value of money:According to the "time value of money" hypothesis, a dollar received now is…

Q: Suppose you wish to borrow Php 20,000,000 to buy a parcel of real estate. The lender is willing to…

A: The mortgage payment are amortize over 10 years as per the schedule shown in excel.

Q: The average tuition fee per semester in the college level is 50,000 pesos. If yearly, tuition fee…

A: Current tuition fees (PV) = 50,000 pesos Growth rate (g) = 4% Period (n) = 15 years

Q: product is to be paid perpetually for P10,551 at the rate of 1%. How much is the present worth of…

A: Perpetuity : A perpetuity can be described as an infinite flow of cash that are equal at a rate of…

Q: If you need P350,000 for a down payment on a house in 3 years, how much money must you invest today…

A: Present value: It can be defined as today’s worth of an investment that will be received in the…

Q: If TNT Corp.invests $50,835 now and it will receive $100,000 at the end of 10 years, what annual…

A: The time value of money (TVM) is the idea that an amount of money is worth more right now than it…

Q: 14,000 as a bonus after 6 years. You have calculated the present value of this bonus and the answer…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: Your company wants to create a scholarship program that will cost $17,000 dollars a year. They will…

A: To calculate the investment amount required today we will use the below formula   Investment amount…

Q: A 60-day $100,000 T-bill was bought for $99,500. What rate of return will be realized if the T-bill…

A: Given: Face  value = $100,000 Present value = $99,500 Days = 60

Q: Your firm rents office space for P250,000 per year, due at the BEGINNING of each year. If your…

A: The present value of the annuity due is the current worth of a cash flow series starting at the…

Q: You are offered $90000 today or $380000 in 10 years. Assuming that you can earn 15 percent on your…

A: Step 1: Given that, which one should you choose for the offer value today = $90000 or Present value…

Q: Present-value comparison) You are offered ​$100,000 today or ​$340,000 in 15 years. Assuming that…

A: We need to calculate the present value of both the alternative in order to understand which…

Q: A house costs $139,000. It is to be paid off in exactly ten years, with monthly payments of…

A: House cost = $139,000Monthly payment = $1,599.62Number of years = 10 years

Q: Question 1 How much will an investor pay for a preferred stock that pays a $0.50 per share dividend…

A: Dividend receivable = $ 0.50Required rate of return = 11.5% Formula = Dividend/ Required rate of…

Q: will receive $1000 two years from today, and at the end of each subsequent year, you will receive an…

A: In perpetuity there are payments forever and there is no break of the payments in perpetuity.

Q: An investment promises to pay you $80 per year for twenty years and, in addition, at the end of the…

A: The problem is to find the price that will be willing to be paid today for cashflows to be generated…

Q: If Ms Chan is thinking of putting RM10,000 into the saving accounts at the end of each year for 10…

A: Annual deposits (PMT) are $10,000. The rate of interest (Rate) is 8%. The maturity (Nper) is 10…

Q: If Ms Chan is thinking of putting RM10,000 into the saving accounts at the end of each year for 10…

A: The annual deposit is RM10,000. The maturity is 10 years. The interest rate is 8%.