Two $200 payments at the ends of the third and fourth years would be worth how much today? if there is an 8% yearly interest rate?

Q: valued at $15000. What is

A: To find the annual interest rate for the annuity, we can use the present value formula for an…

Q: What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to…

A: Present value of annuity payment - it means present value of future annual equal payment made to a…

Q: What is the present value of $30,000 you will receive 7 years in the future, ass

A: The present value is equivalent value of money to be received today that will be equal to money to…

Q: Help

A: Perpetuity in the monetary framework is a circumstance where a cash of income installments proceeds…

Q: How much money will be in a bank account at the end of 15 years if $100 is deposi ted today and the…

A: Following details are given in the question : Deposit today (Present value) = $100 Time period = 15…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: What is the future value of $1000 in 10 years if the interest is compounded at 6% annually ?

A: Future Value  Future value  is the worth of any asset or any sum of money at a future date when such…

Q: Find the present value of an annuity of $ 365.00 per month for 26 years at a rate of 3 1/4% interest…

A: Monthly payment (P) = $ 365 Period = 26 Years Number of monthly payments (n) = 26*12 = 312 Annual…

Q: 2. You buy a perpetuity that starts its annual payment $100 in 5 years from now. The EAR is 5%. a.…

A: A perpetuity is a series of equal cash flows which are never-ending ie: they go on forever. The…

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: A monthly perpetuity of $100 will start 6 months from today.  If the discount rate is 6% APR…

A: Interest rate = 6% p.a. compounding monthly I.e. 6/12 = 0.5% for one month Monthly payment amount =…

Q: What is the future value of an ordinary annuity of $1,000 per year for 9 years compounded at 10…

A: Given: Annual cash flow (A)=$1000 Number of years (n) =9 years Interest rate(r) = 10% = 0.10

Q: If 5000 TL installments are deposited at the end of each year with 3% interest rate in order to save…

A: The number of installments can be calculated with the help of NPER function of Excel

Q: the discount rate is 7.6%, what would you be willing to pay for receiving a payment of $700 eve

A: Value of any annuity is the present value of cash flow from the annuity based on time and interest…

Q: What is the future value of a 12%, 10 year annuity due that pays 1,000 each year.

A: The objective of the question is to calculate the future value of an annuity due. An annuity due is…

Q: What is the value today of receiving $2,506.00 per year forever? Assume the first payment is made…

A: Present value refers to the discounted value of the future cash flows at the discounting rate for…

Q: What is the future value of a $1000 deposit made today, in 7 years, if r = 10% APR compounded…

A: The time value of money is used to determine the future value and present value of any amount given.…

Q: What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is…

A: present value of a perpetuity = Annual payment/Discount rate

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: What's the present value, when interest rates are 8.5 percent, of a $195 payment made every year…

A: Calculation of present value:- Present value is $ 2,294.12   EXPLANATION:- Annual payment(given)…

Q: What is the present value of a ten year annuity whose payment will be $20,000 next year and then…

A: Time = t = 10 YearsPayment = p = $20,000Growth Rate = g = 3%Discount Rate = r = 6.4%

Q: How much money do I need now if I am going to recieve $5000 every 6 months (starting in 6 months)…

A: Compound = semiannually = 2Payment = p = $5000Time = t = 10 * 2 = 20Interest rate = r = 4 / 2 = 2%

Q: What is the future value of a $590 annuity payment over four years if interest rates are 8 percent

A: An annuity refers to a series of cash flow that occurs on a periodic basis. Here $590 is occurring…

Q: What’s the future value

A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…

Q: A one-year annuity that pays $100 semi-annually will starts its payment in 6 months from now. APR is…

A: Present Value of  Ordinary Annuity refers to the concept which dictates the discounted value of a…

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 future value of 1,000 over five years if 8% interest is paid annually ?

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: Suppose that you will receive annual payments of $10,000 for a period of 10 years. The first payment…

A: Given: Annual payments = $10,000 Interest rate = 6% Period = 10 years

Q: How much money will you have in 8 years if you invest $13,000 at a 4.6% annual rate of interest…

A: Present value refers to the concept of time, value, and money used for calculating the current value…

Q: Suppose you will receive OMR 1 each year for the 3 coming year the Interest Rate is 10% Question:…

A: Calculation of future value annuity: Answer: Future value annuity is OMR 3.31

Q: What is the value today of $3,200 per year, at a discount rate of 10 percent, if the first payment…

A: First, we calculate the present value in year 5 of the annuity and then once again calculate the…

Q: what is the value of this annuity five years from now? What is the value three years from now? What…

A: An annuity is a series of payments which starts from 1st period and can end at any period, annuity…

Q: What is the maximum amount you should pay today for an investment that pays a single future cash…

A: Future cash flow (FV) = $25000 Interest rate = 2% Semi annual interest rate (r) = 2%/2 = 1% Period =…

Q: What is the future value eight years from now, of $2,000invested today at a periodic interest rate…

A: to calculate The future value eight years from now, of $2,000 invested today at a periodic interest…

Q: What is the future value of a $50 annuity payment over 20 years if the interest rates are 6%?

A: In the present question we require to calculate the future value from the following details: Present…

Q: What is the present worth of a uniform series of 10 payments that begin one year from now in the…

A: Present Value is the amount of money's worth on the present day which to be received/paid in future,…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.