Find the present value of a cash flow stream which pays $5000 at the end of every year for 15 years at an interest rate of 9%?

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: What amount of money invested today at 15 % interest can provide the following scholoarships: Php…

A: Given, R= 15% A1= PHP 30,000 N1= 6 A2= PHP 40,000 N2= 6 A3= PHP 50,000

Q: For the given cash flow, if the equivalent uniform annual payments is $5000 and the interest rate is…

A: When the periodic cash flows are constant for the period, it is known as annuity. Annuity is…

Q: At a certain interest rate compounded semiannually, 5000 pesos will amount to 20 000 pesos after 10…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: What will be the future value of the following cash flows by the end of the fifth year, if the…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: An asset is projected to generate 14 annual cash flows of $6,000 starting 5 years from today. If the…

A: Present Value: It represents the current worth of the future expected cash flows. It is computed by…

Q: You expect to receive two cash flows: $34,000 paid in 5 years and $51,000 paid in 10 years. You'll…

A: Solution:- When some amount is invested somewhere, it earns interest on it. The amount initially…

Q: What is the future value of a stream of receipts that is $1,000 in year 1 and which increases by 4%…

A: The future value of this stream of receipts can be calculated using the future value of an annuity…

Q: Suppose you wish to accumulate $20,000 over a 10-year period in an account that pays a steady 5% per…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: how much would be available at the end of the time period. How much is the interest earned?

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

Q: What is the present equivalent of $ 180,000 to be received in 15 years when the interest rate is 7%…

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

Q: If you deposit $4,600 today into an account earning an annual rate of return of 14 percent, what…

A: Given information, Present value (PV) = $4,600Annual rate of return (r) = 14% or 0.14Number of…

Q: Using the figure above, calculate the future worth (at the end of year 10) of a cash flow series of…

A: Future Value of annuity due is the annuity in which payment is made at the beginning of the period…

Q: How much money will be in an account for 10 years from today if 20,000 is deposited today at a rate…

A: Following details are given in the question: Present value (Investment today) = $20000 Time period =…

Q: What is the future value of a $1000 deposit made today, in 7 years, if r = 10% APR compounded…

A: The time value of money is used to determine the future value and present value of any amount given.…

Q: What is the present value of a perpetual stream of cash flows that pays $5, 000 at the end of year…

A: Cashflows = $5,000 Growth rate = 4%  Discount rate = 11%

Q: What payment ten years from now is equivalent to P1,800 six years from now if the interest is 16%…

A: solution : a) interest rate =16% compounded annually 0 - 1 - 2 - 3 - 4…

Q: What is the final value of $20, 000 if left in an account that pays 10% interest per annum for 30…

A: The final amount after 20 years will be the future value of the initial deposit.

Q: Find the present worth of a future payment of P200,000 to be made in 15 years with an interest of…

A: Future worth of a present value With present worth (PW), effective annual rate (r) and time (n), the…

Q: What is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…

A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…

Q: What is the present value of a $120,000 cash flow to be received at the beginning of each of the…

A: Amount  of Cash flow = $120000 at the beginning of the year Years(n) = 20 Annual rate(r) = 9%…

Q: What is the present value of 24 monthly cashflows of $420 each starting today if the interest rate…

A: Using excel PV function, This is question of annuity due since cashflow starting today

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

A: Present value of future cash flow can be calculated as follows: = Future Value/ (1 + rate)^number of…

Q: The present value of $100,000 that are expected at the end of one year, at an interest rate(discount…

A: We need to use present value formula below to calculate present value of expected future…

Q: How much money should be deposited each year for 6 years starting 1 year from today, if you wish to…

A: Here, Withdrawal Amount is $5132 Time Period for Withdrawal (n) is 13 years Time Period to start the…

Q: 5. Find the present worth of a future payment of 100,000 to be made in 10 years with an interest of…

A: The present value: The value of a sum of money to be received or paid at some point time in the…

Q: What is the present value

A: Present Value can be calculated using the following formula: Present Value = Annual cash flow /…

Q: What is the final value of $20,000 if left in an account that pays 10% interest per annum for 30…

A: Using excel FV function

Q: A certain sum of money will be deposited in a savings account that pays interest at the rate of 6%…

A: The following information given in the question: Rate of interest : 6% compounded annually (I)…

Q: Suppose you invested $1000 every 3 months over a 15 year period. If money earns an annual rate of…

A: Compound = quarterly = 4Payment = p = $1000Time = t = 15 * 4 = 60Interest rate = r = 6.5 / 4 =…

Q: What is the present value of a perpetual stream of cash flows that pays 20,000 at the end of year…

A: In the given case, we have provided the expected cash flows in Year 1, perpetual growth rate and the…

Q: How much money must be deposited at the end of each quarter if the objective is to accumulate…

A: Working note:

Q: $15,000 is invested for 5 years at an annual simple interest rate of 17%. a) what will you earn in…

A: Interest = Principal * Rate * Time

Q: An annuity of 41,431 is to be paid in 5 years at the rate of 4% compounded continuously. What is the…

A: There are investments made by the company for the purpose of gaining financial returns. These would…

Q: How much will $200,000 deposited in an investment account earning an annual interest rate of 8½% be…

A: Given information: Present value $200,000 Annual interest rate is 8.5% Number of years is 1

Q: If the present value of a cash flow at an annual rate of interest of 6% is $50000, what is the…

A: We need to use Future Value formula below to calculate yearly cash flows. FV =PV(1+i)n Where FV…

Q: Draw the cash flow diagram with your solution About how many years will P100,000 earn a compound…

A: Present value (P) = P100,000 Interest amount (I) = P50,000 Interest rate = 9% Quarterly interest (r)…

Q: Calculate the Present value of Rs. 100,000 at the rate of 15% paid to you in 5 years. Calculate the…

A: The present value is the discounted value of the amount to be received in the future.

Q: If P5,000 shall accumulate for 10 years at 4% compounded quarterly, find the compounded interest at…

A: To find the compounded interest at the end of 10 years we will use future value from excel and then…

Q: Suppose an income stream will produce income at a rate of 4000 + 1000t dollars per year for 5 years,…

A: Present value Present value of an amount with continuous compounding. With continuous compounding…

Q: Find the present worth of a future payment of 100,000 to be made in 10 years with an interest of 12%…

A: The concept of TVM states that money inherently has an interest-earning capacity which makes an…