Ltd has made an investment that is expected to generate a cas ch year for the next five years. If Obama uses a discount rate of the present value of this investment for Obama is (to the nearest b. S101,766 с. $101,154 d.

Q: An investment of R20 000 accumulated to R45 200. If the applicable simple interest rate is 12% per…

A: given, P= R 20,000 A = R45200 r=12%

Q: You are promised an 8 year streams of income from buying a new technology at the initial amount of…

A: Step 1 Given a certain rate of return, present value (PV) is the current value of a prospective…

Q: Assuming that you run a small business and need P50,000 of financing, you can either take out a…

A: There are two types of financing equity and debt. Equity financing is raising funds by selling…

Q: Revenue from a project is expected to be $7000 per year in real terms (i.e. an identical project…

A: Real Value (P) = $7,000Inflation rate (r) = 2.4% or 0.024Number of years (n) = 8

Q: (Q25) You were given an annuity 4 years ago (in 2019) that guarantees a payout of $5,000 every 3…

A: The PV of an investment refers to the cumulative value of its cash flows at present assuming they…

Q: What present value amounts to $15,000 if it is invested for 20 years at 6% compounded annually?…

A:

Q: Approximately, what is the value of (P) if F=114120, n=8 years, and i= 7% per year? O a. 79703 b.…

A: Present value is the current value of certain amount of future money at a required rate of return or…

Q: Fill the correct inputs on the T184 finance application to determine what initial investment would…

A: Given: Future value = $28,000 Interest rate = 2.14% Years = 3

Q: If you are expecting to get OMR 66634 at the end of 3 years. Calculate its present value if the…

A: As your question contains multiple questions, we would be answering only first one. For the answer…

Q: If you invest $15,000 every year and expect to increase your investment by 6% each year for the next…

A: Annual investment (A) = $15000 Growth rate (g) = 6% r = 7% n = 20 years

Q: We have purchased a security with the following payment schedule: Year 1 2 3 Payment $100 S150 S400…

A: Rate of return refers to the percentage of earning from the investment or the purchase of the…

Q: lculate the compounding factor that would be used to determine the future value of an annuity for an…

A: In calculation of the future value of annuity we need future value annuity factors and these are…

Q: You invest the sum of ¢1,750,000.00, you generate the sum of ¢625,500.00, at an interest rate of…

A: It is related to the concept of time value of money. The concept says that the certain sum of money…

Q: An investment will have a future value equal to Php180,250 after 6 years. It has a nominal rate of…

A: The quarterly compounding refers to compounding 4-times a year. To reflect the compounding impact,…

Q: Assume that in 2020, a Liberty Seated half dollar issued in 1892 was sold for $197,000. What was the…

A: time value of money will be applied here. As per the concept of time value of money the worth of…

Q: If $13,000 had been invested in a certain investment fund on September 30, 2008, it would have been…

A: For calculation of interest rate earned on investment , we will use RATE function of excel :

Q: If you invest 5000 dollars today at a compound interest rate of 9 percent, what will be its future…

A: FUTURE VALUE  FORMULA: FV= PV ×CVIFR,N FV = FUTURE VALUE PV = PRESENT VALUE

Q: a) How much will this investment be worth after 10 years? (Round your answer to the nearest cent.) $…

A: Investment Amount = $49,000 Time period = 10 years Rate of interest = 8% compounded continuously.…

Q: I am willing to pay $5,000 today for a promise of $12,000 to be received 8 years from now. What does…

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

Q: What's the future value of $15,000 after  11 years if the appropriate interest rate is 10.75%,…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: (a) What is the amount of each payment? Round the answer to the nearest cent. P/Y =   C/Y =   N =…

A: First, we need to determine the loan amount using the formula below:

Q: How many years are needed for P40,000 to yield P13,756.66 if invested at 6% converted semi-annually…

A: Present value (PV)= 40,000 Interest amount = 13,756.66 Rate of interest = 6% Semi-annual interest…

Q: Caldwell Corporation is considering an investment proposal that will require an initial outlay of…

A: Net present value (NPV) :— It is the difference between present value the of net cash flows and…

Q: Compute the amount that can be borrowed under each of the following circumstances: (PV of $1. FV of…

A: Present value is a financial concept that refers to the current worth of a future cash flow or a…

Q: Approximately, what is the value of (P) if A=600, n322 years, and i= 21% per year? Select one: O a.…

A: The answer is as fallows

Q: Steffi Derr expects to invest $5,000 annually that will earn 10%. How many annual investments must…

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

Q: Compute the PV of a perpetuity with monthly payments of $1,000, given an annual discount rate of 4%…

A: Present value refers to the current worth of a future sum of money or cash flow. It accounts for the…

Q: Assume that you start with a $1000 dollar invested in each ETF at the end of 2003. Calculate the…

A: Amount invested in IWM is $1,000 Amount invested in EEM is $1,000 Value of EEM in 2019 is 3049.196…

Q: If you invest $15,000 every year and expect to increase your investment by 6% each year for the next…

A: This is a growing annuity and we have to find the present value of a growing annuity.

Q: Mr. Y wishes to find out the value of investment which return Ksh. 10,000 forever, discounted at 10…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: 3. Determine the future values if OMR5,000 is invested in each of the following situations: a. 5…

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

Q: Finance Calculate the price of an FRA (Forward Rate Agreement) that starts in 30 days and ends in 60…

A: Forward rate agreement It involves two parties. One pays fixed interest rate in exchange of the…

Q: You are planning to purchase an investment today. The investment will pay you Rs. 13,000/= at the…

A: Time Value of money states that a dollar today will be worth more than a dollar sometime in the…

Q: 16. (a) An investment secures an income of i at the end of each year for n years; plus a capital sum…

A: The present value of an investment is calculated by multiplying the instalment deposits with the…

Q: Dhofar Insurance Company has made an investment in another company that will guarantee it a cash…

A: Given information: Cash flows: OMR 37,250 Discount rate : 15% Time period : 5 years

Q: You have received a bonus of $20.000 that you will invest all now. Approximately, what would be the…

A: Using excel FV function

Q: Approximately, what is the value of (P) if F=114120, n=8 years, and i= 7% per year? a. 79703 O b.…

A: Present value is today's value of money expected from future income.  Present value (P) = Future…

Q: You deposit $8000 in year 1, $7500 in year 2, and amounts decreasing by $500 per year through year…

A: Given Details: Amount deposit in year 1 =$8,000 Amount deposit in year 2 =$7,500 Time period = 10…

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.