Find the present value that will grow to $23,000 if interest is 8% compounded quarterly for 19 quarters.

Q: What is the present value of $1,000 paid at the end of each of the next 56 years if the interest…

A: Present value is the current worth of the amount deposited or received in future date.

Q: If $600 is invested in an account with an annual interest rate of 14.5%, compounded continuously,…

A: We need to use the formula of continuous compounding belowA=P(e)rn  where   A=future valueP=present…

Q: 5) How many years are required for P15k to increase to P20k if invested at 12% per year compounded…

A: Since you have asked multiple questions, we will solve the first question for you. Please ask…

Q: You invest $1,000 for 3 years at 6% per annum compounding quarterly. What is the equivalent annual…

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

Q: An investment will return $125 at the end of each month for 5 years and then $250 at the end of each…

A: Value at the end of 5 years of $250 received for next 3 years every month, can be calculated as…

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: how much more interest will be earned if $4500 is invested for 7 years at an annual rate of 11%…

A: Given information: Present value is $4,500 Number of years is 7 Interest rate is 11%

Q: c. Calculate the future value of $8,000 in 5 years at an interest rate of 12% per year.

A: In this question we need to compute the future value of investment. We can calculate the future…

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 long would it take an amount of  $4,000 invested at an interest rate of 21 % per year,…

A: Given information: Present value is $4,000 Future value is $16,000 Interest rate is 21%

Q: Suppose that $4000 is invested each quarter, for the next 10 years. What is the future worth if the…

A: A concept that implies the future worth of the money is lower than its current value due to several…

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: 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: How much will you accumulate if $200 per quarter is invested at a rate of 8% per year compounded…

A: The future value of the payment or amount is its value at the end of the maturity period which…

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: What present amount of money must be deposited at 11% interest compounded annually to grow to…

A: Formula to calculate compound interest is: A = P(1+r/n)^nt Where A is the future value, P is the…

Q: Suppose you invest $25500 for 12 years paying 2.25% annual interest. How much will you have at the…

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

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

A: Working note:

Q: Compute to the penny the present value of $5,000 dollars to be paid at the end of four years if (a)…

A: Future value is a financial concept that refers to the projected value of an investment or asset at…

Q: ) Find the amount to which $100 will grow at an interest rate of 16% compounded semiannually for 4…

A: 1- a  initial investment =$100 interest rate =16% compounding semiannual  semiannual interest =8%…

Q: What will be the future worth of series of 15 annual $100 payments if the nominal annual interest…

A: An interest rate method in which current interest is computed by multiplying the interest rate by…

Q: Compute the future value of annual payments of $100, paid for 5 years, with an interest rate of 8% (…

A:

Q: find the present value of a stream of payments that begin in year one at $3000 and increase by 10%…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: Calculate the future value (FV) in 6 years time of £600 invested at 12% nominal annual interest, if…

A: Future value is the compounded value of a present sum of money compounded at a given interest rate…

Q: If $ 30000 is invested at 8% interest per year, compounded continuously, how much will be in the…

A:

Q: Find a future value of an ordinary and annuity 300Paid quarterly for five years, if the interest…

A: If the interest is paid quarterly so the interest rate must be divided by 4 because in a year there…

Q: How many years will it take $145,000 to grow to $645,000 if it is invested in an account with a…

A: We use NPER function in excel to calculate time taken

Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…

A: Future compounded amount(A)=PV1+rnnt

Q: With a present value of $125,000, what is the size of the withdrawals that can be made at the end of…

A: Present value (PV) = $125,000 Period = 10 Years Quarterly periods (n) = 10*4 = 40 Interest rate =…

Q: Find the future value of 100 Rials compounded continuously at an annual rate of 6% for 12 years.…

A: The Future value when the interest rate is compounded continuously shows the future value of the…

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.