Find the present value of the given future payment at the specified interest r$5000 due in 20 years at 5% compounded annuallyThe present value is approximately S(Round to the nearest cent as needed.)

Given information, Future value (FV): $5000 Interest rate (r): 5% compunded annually Compunding in…

Answered: Find the present value of the given…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

If the nominal annual interest rate is 5% compounded monthly, what is the effective interest rate?
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Compare the interest earned by $10,000 for three years at 7% simple interest with interest earned by the same amount for three years at 7% compounded annually. Why does a difference occur? Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. The simple interest earned is $ The compound interest earned is $ (Round to the nearest dollar.) (Round to the nearest dollar.) There is a difference in the amount of interest earned because original principal. allows interest from previous years to earn additional interest, whereas only considers the
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Q A series of equal quarterly payments of $5,000 for 10 years is equivalent to what present amount at an interest rate of 9% compounded montly.
Compare the interest earned by $10,000 for three years at 9% simple interest with interest earned by the same amount for three years at 9% compounded annually. Why does a difference occur? Click the icon to view the interest and annuity table for discrete compounding when i=9% per year. The simple interest earned is (Round to the nearest dollar.) (Round to the nearest dollar.) The compound interest earned is $ There is a difference in the amount of interest earned because compound interest allows interest from previous years to earn additional interest, whereas simple interest only considers the original principal.

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Find the present value of the given future payment at the specified interest r $5000 due in 20 years at 5% compounded annually ..... The present value is approximately S (Round to the nearest cent as needed.)