How much would a company have to invest now in order to sufficiently provide for annual payments of $313,000 over a 8-year period? Assume the interest rate is 12% per year.
Q: The present worth of of P40,000 in the first year and amounts of increasing by P3,000 per year…
A: Here, Initial cash flow = P40,000 Increase in amount per year through five years = P3,000 Rate of…
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A: Calculate the annual income over a period of 5 years as follows:MS-Excel --> Formulas -->…
Q: How many years will it take for $136,000 to grow to be $468,000 if it is invested in an account with…
A: Number of years refers to the time period for which the investment is paid. Sometimes, the period of…
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: At what nominal rate, compounded quarterly, would $15,000.00 have to be invested to amount to…
A: FV = PV * (1 + i/n)^(n * Years) Where FV = Future Value = $18276.04 PV = Present Value = $15000 i =…
Q: The company is going to invest P26,000, P34,000, P46,000, and P54,000 respectively into a savings…
A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…
Q: How much must you invest at 12% interest, compounding quarterly, in order to see your investment…
A: The amount of investment can be calculated by discounting the future value using the appropriate…
Q: An engineering company currently pays $18,175 a quarter for insurance. They pay on the 1st day of…
A: The quarterly interest rate will be the rate with equates the present value of the quarterly…
Q: money is worth 7.3%, compounded quarterly?
A: Present Value of future cash flow means the cash flows discounted at a given rate of return. FV*…
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: A firm is scheduled to receive payment of $68,000 in 2 years. What is the present value of this…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: How many years does it take for an investment of $280,000 to accumulate to at least $425,000 at 15%…
A: The calculation method where interest on interest is charged is known as Compound Interest. It is…
Q: 1. If a company borrows $250,000 for four years at 9%, what would the annual loan payme nts be? If a…
A: 1) Borrowed amount (B) = $250000 r = 9% n = 4 years Let the annual loan payments = A
Q: What is the present value (PV) of an investment that pays $90,000 every year for four years if the…
A: The present value of an annuity is the sum of the discounted value of the periodic cash flows.…
Q: A company has a liability of 410,000,000 that is must pay in 26 years. If it can round up the annual…
A: Present Value Can be computed using the formula given below Present Value = 1/(1+r)^1 + 1/(1+r)^2 +…
Q: How much will have to be invested at the beginning of each year at 7%, compounded annually, to pay…
A: Future value = Present value (1 + Rate of interest)number of years
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: How many years will it take for P13,000.00 to become P20,000.00 if it is invested at 8% compounded…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: If you invested $50,000 at one point in time and received back $80,000 ten years later, what annual…
A: As we have the beginning value, ending value and time period, we can use Compounded Annual Growth…
Q: What annual interest rate must be obtained to accumulate $10,000 in 8 years on an investment of…
A: The interest rate is compounding quarterly. Hence, it is important to understand that, annual rate…
Q: At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years?
A: We use rate function to calculate interest rate
Q: If $500,000 is to grow to $700,000 over a 5-year period, at what annual rate of interest must it be…
A: The present value is the value of the sum received at time 0. It is the current value of the sum…
Q: How much would an investor be willing to pay for an investment that guaranteed payments of $4,000 at…
A: Using excel PV function Where PMT is a periodic payment NPER is no. of periods RATE is rate per…
Q: How much will Kingston Technologies have to pay each year in 9 equal payments, starting 2 years from…
A: Here, Loan Amount is $900,000 Interest Rate is 13% Loan Start Date is two year from now Loan Period…
Q: How much will Kingston Technologies have to pay each year in 8 equal payments, starting 2 years from…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: An investment of $40,000 yields a net annual income of $8,000 for 11 years. What is the annual…
A: Information Provided: Present value of investment = $40,000 Annual Income = $8000 Term = 11 years
Q: A company is expected to result 2900$ savings first year then increase by 200$ annually, if the rate…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: A company wants to deposit $500,000 per year in an investment which earns interest of10 percent per…
A: The value at the end of the 10 deposit is the future value of the first 10 deposits.
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: A business worth $990,000 is expected to grow at 8% per year compounded annually for the next 5…
A: Req-a. Business Worth today $9,90,000 Growth Rate 8% Future value of $1 at 8% for 5 years…
Q: Suppose that $1,000 is invested for 4 years at an interest rate of 12%, compounded quarterly. How…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: If the initial investment is $200,000, what would be the nominal annual rate of interest compounded…
A: Interest is the cost of borrowing the money.
Q: Suppose you borrow $70,000 at 5.25% annual interest to be repaid with a fully amortized plan over 14…
A: Annual payment (P) on a loan (PV) of $70,000 at an interest rate ( r ) of 5.25% and for 14 years (n)…
Q: If a firm borrowed $500,000 at a rate of 10% simple interest withmonthly interest payments and a…
A: Given data; Principal amount = $500,000 interest rate = 10% First we will calculate interest…
Q: At what interest rate must $112,000 be inves that it will be worth $392,000 in 14 years?
A: Future value consist of interest and future value of the investment. Money grow with time and…
Q: A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn.…
A: Invested amount or principal amount is P1,000 Effective Annual interest rate is 5% Principal is…
Q: A business received a for year $2,000,000 loan at an interest rate of 7% per year. The principal is…
A: NPV means PV of amount which is receive or pay in future. NPV can be find by using discounting rate…
Q: How much money should a company deposit into an account now so that they will have $50,000 in 6…
A: The present value of a cash flow is the current worth of a cash flow at a certain rate of interest…
Q: i) If a continuous investment of $5,600 per year for 29 years leads to the accumulation of $500,000…
A: i) Annual investment (A) = $5600 n = 29 years Accumulated value = $500000 Let r = Continuously…
Q: A business worth $180,000 is expected to grow at 12% per year compounded annually for the next 4…
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Q: What is the present value of an investment in which the interest rate is 3.9% per year, compounded…
A: The time value of money is the idea that the value of money received today will be more worthy than…
Q: If $ 30000 is invested at 8% interest per year, compounded continuously, how much will be in the…
A:
Q: The present amount needed to generate an annual income of $50,000 for 20 years if the expected rate…
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: If an investment grew to $15,000 in 2 years and the interest amount earned was $1,000, calculate the…
A: Investment means engaging your funds to earn some additional money over the period. interest is a…
Q: You have invested 7 million dollars for a horizon of 24 months. You will be paid interest at 7.80%…
A: Initial investment (I) = 7 million Semiannual interest rate (r) = 0.039 (i.e. 0.078 / 2) Semiannual…
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A: EAR stands for effective annual rate. EAR is greater than APR (annual percentage rate) when the…
Q: A company estimates that it must make annual investments of $ 53828 over a 23-year period after 4…
A: Step 1 The worth of a series of periodic payments at a future date, assuming a specific rate of…
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- If a firm borrowed $500,000 at a rate of 10% simple interest with monthly interestpayments and a 365-day year, what would be the required interest payment for a30-day month? If interest must be paid monthly, what would be the effective annualrate?If $500,000 is to grow to $700,000 over a 5-year period, at what annual rate of interest must it be invested, given that interest is compounded quarterly?What is the present value of an investment that will pay $1,000 in one year's time, and $1,000 every year after that, when the interest rate is 8%?
- What interest rate, when compounded annually, is involved if an initial investment of $4000 turns into $10000 in 6 years?If you borrowed P10,000 from a bank with 18% interest per annum, what is the total amount to be paid at the end of one year?How many years will it take $145,000 to grow to $645,000 if it is invested in an account with a quoted annual interest rate of 9% with monthly compounding of interest?
- At what annual interest rate, compounded annually, would $490 have to be invested for it to grow to $1,968.84 in 14 years?Suppose you invested $1000 semi-annually over a 10 year period. If money earns an annual rate of 12% compounded semi-annually, how much would be available at the end of the time period. How much is the interest earned?At what annual interest rate, compounded annually, would $500 have to be invested for it to grow to $1,942.45 in 11 years? At what annual interest rate, compounded annually, would $500have to be invested for it to grow to $1,942.45 in 11 years?
- What is the present equivalent of $ 180,000 to be received in 15 years when the interest rate is 7% per year?A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this payment if r=4% compounded annually?You make an investment into a money market account at time T=0. In year T=5, the value of the money market account will be $5,000. The money market account pays an annual interest of R=6%, and interest is compounded on a quarterly basis. What is the present value of this account?