If $476 invested today yields $500 in one year's time, what is the discount rate?

Q: How much would1,000,000 due in 100 years with worth today if the discount rate is 20%?

A: Present Value is the current value of the future sum of money at the specific rate of return.

Q: Find the present and future value of an income stream of $6000 per year for a period of 10 years if…

A: Present value (PV), also referred to as present discounted value, signifies the current value of a…

Q: How much would $4,625 due in 50 years be worth today if the discount rate were 7.5%?

A: It can be calculated using present value formula.   PV = FV / (1 + r / n)nt Where, PV = Present…

Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $2,000 monthly?

A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…

Q: Which of the following statements is true? Group of answer choices If interest is 13% compounded…

A: The objective of the question is to identify the correct statement among the given options related…

Q: If the payments are monthly how would you set up the present value?

A: The concept of present value asserts that a sum of money today is worth more than the same sum in…

Q: What should be the simple discount rate if a loan amount of P500,000 with a loan term of 3 years…

A: Loan amount (P) = P500,000 Loan proceeds (C) = P480,000 Loan term (t) = 3 Years Simple discount rate…

Q: What interest rate makes this a fair price?

A: We can determine the required return by rearranging the PV of growing perprtuity formula as below:In…

Q: What is the present worth of annually payments ( 2000 $ ) if the first payment will deposit after…

A: All deposits will happen at the start of each year. So, the first payment will be at start of 6th…

Q: what would be the interest accumulated on 1800$ after 270 days with an annual interest rate of 1.25%…

A: Accumulated interest means interest is accumulated on the loan amount or deposit for a certain…

Q: Suppose the interest rate is 4.3%. a. Having $450 today is equivalent to having what amount in one…

A: The money's present value is its current worth compared to some of its potential future value after…

Q: What is the present value of $12.200 to be received 4 years from today if the discount rate is 5…

A: Given Information: Amount to be received in future=$12.200 Number of years=4 Discount Rate=5%

Q: ears if the annual interest rate is 8 percent. a. What would be the future value if the interest…

A: Simple interest is that no interest on interest is considered and in compounding interest interest…

Q: What is the present value of $9,500 to be received in 8 years if 7% is the proper discount rate?

A: Computation of present value: Hence, the present value is $5,529.09.

Q: How much would $30,000 due in 20 years be worth today if the discount rate is 11.0%?

A: present value=future value1+rn where, r=rate of interest n=number of years

Q: Find the future value of OMR10,000 invested now after five years if the annual interest rate is 8…

A: FUTURE VALUE FORMULA: simple interest : future value = present value ×1+N ×r compounding: future…

Q: What is the future value of a 6%, 10-year ordinary annuity that pays $200 each year?  If this were…

A: The future value of annuity is calculated using the formula below:

Q: Which of the following will generate the greatest future sum of money, assuming other variables stay…

A: Assumed values: Assume: Amount Present value(PV) $2,500 Years(NPER) 5

Q: 1. How much would $10,000 due in 100 years be worth today if the discount rate were 10%?

A: Simple interest is a method of interest payment wherein a borrower of a loan pays interest expense…

Q: Suppose an interest rate of 4% a) having $200 today is equivalent to having what amount in one year?…

A: (a) Interest  = 4% Present value =$200 Time = 1 year So, Amount at the end of one year =  Future…

Q: P100 is received at the end of one year, P500 at the end of two years, and P1000 at the end of three…

A: Present value is the sum of discount value of all future cash flows.

Q: 4. Suppose our savings account ($937.33) pays us compound interest with monthly compounding.…

A: Compounding is related to earning interest on interest. The compounding interest is more beneficial…

Q: Compute the number of years (t) if future value (FV) = $5575,  present value (FV) = $1812, and…

A: Future Value (FV) is a financial term used to describe the value of an asset at a future date, given…

Q: A sum of 2 million is equivalent to 2.36 million one year from now. Find interest rate?

A: Given Information : Present value (PV) = $2 million Future value (FV) = $2.36 million Number of…

Q: What is the present value of $200 per year, at a discount rate of 18.25 percent, if the first…

A: Annuity Amount is $200 Discount Rate (r) is 18.25% First Payment is received is 6 years from now…

Q: What is the price of a perpetuity that pays $17.50 semi-annually and the required rate of return is…

A: In this question we need to compute the price of perpetuity that pays $17.50 semi-annually.

Q: If the principal is 124,860 and the future value is 182,568 what is the value of the single payment…

A: single payment present worth factor =Present value (Principal) /Future Value

Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $1,000 monthly?

A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…

Q: What is the present value of payments that are: year 0: 5000, year1: 10000, year2: 12500, year3:…

A: Present value shows the worth of future’s money at present time. It is also known as discounted…

Q: If a person saves $62 a month by using coupons and doing comparison shopping, (a) what is the amount…

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: What's the present value of a perpetuity

A: The present value of perpetuity is determined by dividing the amount of regular cash flow by the…

Q: What should be the interest rate of an investment cost P5,500 that pays P300 in perpetuity

A: Investment cost = P 5,500 Annual payment = P 300

Q: What is the price of a perpetuity that pays $50 annually and the required rate of return is 6%?

A: In this question we need to compute the price of a perpetuity.

Q: What are the annual cash flows (in $) of an annuity for 19 years, which costs $48,783 today, if the…

A: The sequence of periodic payments or receipts that are made as part of an annuity contract over time…

Q: 1. Assume that $1,000 is to be received 30 years from today. Compare the present values obtained…

A: The present value of a cash flow is the present value of a cash flow at a certain rate of interest…

Q: If you put up $51,000 today in exchange for a 6.25 percent, 15-year annuity, what will the annual…

A: Solution- We know that  PV = PMT [(1-(1+r)^-n)/r] Where PMT= Periodic payment r= rate n= number of…

Q: Suppose that you can make an annual profit of $600 on an investment of $4000. Suppose you borrow the…

A: In this we have to calculate the rate of return earned and from that we can real rate of return.

Q: how much would $3,050 due in 50 years be worth today if the discount rate were 7.5%

A: Present value : The current value of a future sum of money or stream of cash flows, given a…

Q: Suppose the interest rate is 4.4%. a. Having $550 today is equivalent to having what amount in one…

A: a. Future Value:Having $550 today is equivalent to having $574.20 in one year at a 4.4% interest…

Q: What is the rate of interest by what $100 becomes $200 in 4 years?

A: An interest rate is the cost of borrowing money or the return earned on invested funds, expressed as…

Q: Find the present value of $6000, due after 4J years, if money can earn interest at the rate (.08,m =…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…