What is the future value of $5,000 deposited for four years compounded atan annual rate of 10 percent?

Q: Compute the amount of money to be set aside today

A: Present value means the value of  future money . Future cashflow are discounted at a discounted…

Q: What present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually?…

A: Present Value = Future value / (1+r)^n Where, r = rate of interest i.e. 8% n = no. of years i.e. 20…

Q: Find the future value of $20,000 deposited for 5 years at a rate of 2.75% compounded continuously.…

A: The value of the cash flow after a particular time period with the addition of the interest amount…

Q: Current Ratio:  Would the following events increase or decrease a firms ratio?  a. Inventory sold?…

A: Part a Current ratio= Here current assets = cash and cash convertible + stock + receivable Note…

Q: What is the future value of $550 invested for 5 years at 15 percent compounded annually?

A: Following details are given in the question: Present value (Investment today) = $550 Time period = 5…

Q: At what annual interest​ rate, compounded​ annually, would ​$500 have to be invested for it to grow…

A: FV = A * (1+r)nwhereFV = future valueA = amount investedr = interest raten = time period

Q: What is the future value of $100 after 5 years under 12 percent annual compounding?

A: Time value of money is a concept that helps in determining the value of cash (or money) at a future…

Q: what is the future value of an ordinary annuity of 2,200 per year for 15 years compounded at 16…

A: To open the "FV function" window - MS-Excel --> Formulas --> Financials --> FV.

Q: HOW LONG WILL IT TAKE 10,000 TO ACCUMULATE TO THE AMOUNT OF 11,000 AT 12% COMPOUNDED ANNUALLY?

A: Present value (PV) = 10000 Future value (FV) = 11000 Interest rate (r) = 12%

Q: What monthly payment into a sinking fund at 8% compounded semi –annually will be needed to raise…

A: Sinking Fund is a fund that is kept aside or borrowed to pay off a debt or a loan. It helps the…

Q: If P60,000 is due at the end of 4 years at 5% compounded annually. What is the present value?

A: Present value is the value of future cash-flow today. In other words the current value of the…

Q: Find the present value of the ordinary annuity with annual payment of $400 per year for 10 years at…

A: The ordinary annuity is a series of payments made at the end of each period with equal interval of…

Q: An annual perpetuity of $10,000 has a present value of $250,000.  What is the annual interest rate?

A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…

Q: What present value amounts to $25,000 if it is invested for 20 years at 5% compounded annually?…

A: Solution Concept The interest rate compounded annually means the interest is charged on interest and…

Q: sent value of a perpetuity with interest rate of 7.5% is $150,000. What is the annual cash flow amou

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

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 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 is the final value of $20, 000 if left in an account that pays 10% interest per annum for 30…

A: The final amount after 20 years will be the future value of the initial deposit.

Q: What is the future value if $15,000.00 is invested for 2 years at 10% compounded every 2 months? If…

A: Cash flow related future discounted, time value of money, or TVM, helps account for the consequences…

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: The future value of an ordinary annuity of $1,000 each year for 10 years, deposited at 3 percent, is

A: Payment (PMT) = $ 1,000 Tenure (N) = 10 years Rate (R) = 3%

Q: Determine the present value of an annuity due of $5,000 per year for 15 years discounted back to the…

A: Using excel PV function

Q: What is the final value of $20,000 if left in an account that pays 10% interest per annum for 30…

A: Using excel FV function

Q: What is the future value of a perpetuity with annual payments of $1,000 compounding at 10%

A: Payment = p = $1000Interest Rate = r = 10%

Q: What equal annual deposits must be made at t = 2, 3, 4, 5, and 6 in order to accumulate $25,000 at t…

A: Future value is the value of current cashflow compounded to the future date at specified rate.…

Q: At what annual interest​ rate, compounded​ annually, would ​$510 have to be invested for it to grow…

A: Investment amount (PV) = $510 Future value (FV) = $1961.97 Period (n) = 15 Years

Q: A sum of $1,000 is deposited at 8% interest, compounded annually for 5 years. What is the future…

A: In this question we require to compute the future value of investment from the details given.

Q: The future value of $500 to be received at the end of each year for seven years at adiscount rate of…

A: Computation of future value:Therefore, the future value is $4,461.40.

Q: Find the future value of the given amount. Round the result to the nearest cent. $25000 at 12%,…

A: INTEREST RATE (12%/12) 1.00% YEARS OR PERIOD (12*10) 120 PMT (MONTHLY PAYMENT) 0 PRESENT VALUE…

Q: What is the present value of an ordinary annuity of 2,200 per year for 15 years discounted back to…

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

Q: The most recent financial statements for Crosby, Incorporated, follow. Interest expense will remain…

A: An Income Statement is a financial statement report that indicates the revenue and expenses of a…

Q: What is the present value of the following annuities? 70 a year for 3 -years discounted back to the…

A: Annuity referes to the payments made at regular interval. It could be ordinary annuity when payments…

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.