Find the present value and the compound discount of $6 600.00 due in seven years, three months, if interest is 7.2% compounded quarterly.

Q: Determine the present value of a series of 30 quarterly payments of $3,500 each which begins one…

A:

Q: Find the present value of the given future payment at the specified interest rate. $520 due in five…

A: Time value of money is a financial concept which is used to calculate the value of money in present…

Q: 3. $1,000 at the beginning of each month, forever.

A: Payment Amount = $1,000 Interest Rate = 5%

Q: e future value and the interest earned

A: Future value refers to the amount of the current asset at some future date based on the assumption…

Q: What is the discounted value of payments of $38.00 made at the end of each year for 8 years if…

A: The time value of money is the foundational concept in finance which takes into account the effect…

Q: Determine the present value of an Annuity Php 1,000.00 for 25 quarterly installment that will start…

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

Q: future value and the present value of an annuity of 15,000 payable at the end of every three months…

A: Given information : Annuity  $    15,000.00 Total payments 30 First payment due 7 Interest…

Q: An annuity-immediate has payments of $400, $600, $100 at the end of year for three years. Determine…

A: Convexity means a change in prices due to a change in interest rates. It is used by analysts for…

Q: Find the present value of the following annuities: 500 payable semi-annually for 10 years if the…

A: Solution:- When an equal amount is paid each period, it is called annuity. Present value of annuity…

Q: Determine the present value of payments of $100 at the end of each month for 20 years. Use a…

A: Monthly payment (P) = $100 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period = 20…

Q: Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of…

A: Annuity refers to a stream of constant and usually fixed cash flows. Here the annual amount of $6200…

Q: Find the effective interest rate for a $20,000 for three years if the interest is compounded…

A: Effective interest rate:Effective interest rate is also called as annual equivalent rate which is…

Q: Calculate the present value of an annuity immediate of 100 per quarter for 6 years using a nominal…

A: Annuity amount = $100Number of years = 6Interest rate = 9%To find: Present value of the annuity.

Q: Find the compound amount for the following deposit. $16,000 at 5% compounded quarterly for 10 years.…

A: The future value (FV) of an investment is the value of the investment at a future point in time,…

Q: Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of…

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

Q: present

A: Formula to calculate Present value: PV = FV/(1+r)^n Where PV is the present value, FV is the fututre…

Q: Quarterly payments of $ 4,000 at the end of each term for 4 years. Interest rate = 7% compounded…

A: Quarterly payment (Q) = $4000 n = 4 years = 16 payments Interest rate = 7% per annum Let's calculate…

Q: Compute the future value of annual payments of $1,000, paid for 4 years, using an interest rate of…

A: Future value can be defined as the future worth of the present cash flow that will be received from…

Q: You receive annual payments of $4,800 at the beginning of each year for 7 years. The discount rate…

A: The total value of yearly payments at a particular date in future for a given discount rate is…

Q: For the following annuity due, determine the nominal annual rate of interest. Future Periodic Rent…

A: Solution:- When an equal amount is paid at the beginning of each period, it is called annuity due.…

Q: Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of…

A: Annual interest rate = 12%Period = 5 yearsAnnual amount = $3200To find: PV of annuity when payments…

Q: nual, semiannual, and quarterly compunding periods, (1) calculate the future value if $5000 is…

A: Future value can be computed using FV function in excel. FV function computes interest rate for…

Q: Find the principal P that corresponds to the future value F = $10,000 under r = 5.2% interest…

A: To calculate principal P, we need to use time value of money formulae.

Q: Find the AV of $3,500 at the end of 10 years at an annual effective interest rate of 4.9% for the…

A: Given Information: Future value is $3500 Annual effective rate for 3 years is 4.9% For remaining…

Q: Find the present value of $51,250.00 due in 8 years at an interest rate of 4.5% per year compounded…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: Calculate the future value of 6 payments at the end of the year of $10,000 with an annual interest…

A: 6 Payments at the end of the year = $10,000Interest rate = 8%Number of payments = 6

Q: What is the present($) worth of two $100 payments at the end of third and fourth years if the annual…

A: The formula for the calculation of present worth is as follows: Present worth=Future…

Q: ind the future values and the int arned for the following annuities very 2 months for 1 year, 8 mont…

A: Future values of annuities include the amount deposited and the interest being accumulated over the…

Q: a) Determine the present equivalent value of $10,000 paid every three months over a period of seven…

A: The present value is the addition of the discounted values of the future payments.

Q: Find the future values of the ordinary annuities at the given annual rate r compounded as indicated.…

A: The objective of the question is to calculate the future value of an ordinary annuity. An ordinary…

Q: Find the present and the future value of quarterly payments of $2,000.00 for 5 years with interest…

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

Q: The Seattle Corporation has been presented with an investment opportunity which will yield cash…

A: Payback period is the time required to recover the initial amount of investment but does not…

Q: the formula  find the monthly payment of an ordinary if the present value is P18,500 with an…

A: Present value of money is that equivalent money that includes interest and principal amount. That is…

Q: Use the formula for computing future value using compound interest to determine the value of an…

A: The future value of the account can be computed by using the future value of a single deposit…

Q: Using​ annual, semiannual, and quarterly compounding​ periods, (1) calculate the future value if…

A: The effective rate is the actual interest rate earned or paid on a financial. It takes into account…

Q: Find the future value of an annuity due of $400 each quarter for 2 1/2 years at 12%, compounded…

A: Compound = Quarterly = 4Payment = p = $400Time = t = 21/2 * 4  = 10Interest rate = r = 12 / 4 = 3%

Q: Find the interest rate needed for the sinking fund to reach the required amount. Assume that the…

A: Compound = Quarterly = 4Future Value = fv = $19,654Time = nper = 4 * 4 = 16Payment = pmt =…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.