What is the present value of a $500 payment made in four years when the discount rate is 8 percent?

Q: You make two annual payments of $2,000 each (the first payment is made one year from today) into a…

A: Number of annual payments (N) = 2 Payment = 2000 Interest rate = 10%

Q: What is the present value of a $350 payment in one year when the discount rate is 8 percent? (Round…

A: Persent value is currant value of future investment. Persent value is inverse to future value. It…

Q: What's the present value of a $500 annuity payment over four years if interest rates are 8 percent?

A: Given: Annuity payment (P) : $500 Interest rate (Annual) (r) : 8% Time period (n) : 4 years

Q: 6. What is the present value of $700 to be received in two equal installments ($350 each), two years…

A: Information Provided: Amount to be received at the end of year 2 = $350 Amount to be received at the…

Q: What is the aggregate present value of $500 received at the end of each of the next three years,…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: What is the present value of a $1,380 annuity due making payments for the next 5 years at an…

A: Present Value of annuity is that value which was invested by investor today after that investor will…

Q: The annual discount rate is 7.70%. a. What is the present value of a perpetuity that pays 2,000 at…

A: Perpetuity is a situation where a stream of Cashflow payments continues indefinitely or is an…

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: What is the present value of $2,100 to be received 14 years from now assuming a discount rate of…

A: Given information: Future value of amount is $2,100 Number of years is 14 Discount rate is 3.7% for…

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: If money is worth 3 ½% compounded monthly, find the compound discount if 12,200 is discounted for 2…

A: Here, Amount is 12,200 Time Period is 2 years and 11 months Time Period in Months will be: =24…

Q: What is the present value of $84,253 to be received or paid in 5 years discounted at 11% by factor…

A: The Present Value Factor (PVF) for nth year discounted at rate r (r%) can be expressed as:

Q: What is the value today of receiving six annual payments of $400,000, beginning one year from now,…

A: Using the scientific calculator, we can calculate the NPV of the cash flows.  Enter the value as…

Q: What is the present value of $6,000 to be received at the end of 6 years if the discount rate is…

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

Q: You receive annual payments of $4,800 at the beginning of each year for 7 years. The discount rate…

A: The total value of yearly payments at a particular date in future for a given discount rate is…

Q: What is the present value of $30 to be received at the beginning of each year for the next five…

A: Present Value of annuity due = pmt*[1-(1/(1+r)^n)/r]*(1+r) Where, Pmt = yearly payment i.e. $30 r…

Q: What is the present value of a $900 annuity payment over five years if interest rates are 8 percent?

A: The present value of annuity refers to the current value of a series of future payments. The present…

Q: What is the present value of a $775 annuity payment over six years if interest rates are 11 percent?

A: In this question we need to compute the present value of annuity payment from below details: Annuity…

Q: What

A:

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

A: Computation of present value:

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: What is the present value of $500 to be received 10.5 years from today when the annual discount rate…

A: Note : 1. As per the guidelines only first question will be answered. Kindly post the remaining…

Q: What is the value of an ordinary annuity at the end of 10 years if $500 per quarter is deposited…

A: Amount Deposited per quarter = $500 Years = 10 Rate =8% Total terms(n) = 10*4 =40 Rate per quarter…

Q: What is the present value of a $350 payment in one year when the discount rate is 10 percent?

A: This question require us to compute the present value from below details: Future value = $350…

Q: What's the present value of $14,000 discounted back 5 years if the appropriate interest rate is…

A: An investment decision is taken on the basis of the returns expected to be generated by the…

Q: What is the present value of a $1,500 payment made in nine years when the discount rate is 8…

A: In this question we are required to compute the present value from following details: Annual payment…

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: What is the percent value of $2,725 per year, at a discount rate of 10%, if the first payment is…

A: The time value of money implies that the cash in hand at present has a higher value than the cash…

Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…

A: GIVEN, PRESENT VALUE=$1000 future value=$1276.30 n=5

Q: If I loaned an amount of P10,000.00 with an interest rate of 8.44 % compounded monthly for 5 years.…

A: Loan amount = P 10,000 Annual interest rate (AR) = 8.44% Number of compounding per year (m) = 12

Q: What is the value today of receiving five annual payments of $500,000, beginning one year from now,…

A: Present value = Cash Flow 1/(1 + r)1 + Cash flow 2/(1 + r)2 + Cash Flow 3/(1 + r)3 + Cash flow 4/(1…

Q: The present value of $10,000 discounted at 5% per year and received at the end of 5 years is

A: Discounting of money is the evaluation of the present value of cash flow, which is likely to be…

Q: What is the present value of a $750 payment made in three years when the discount rate is 5 percent?

A: In this question we need to compute the present value of $750 payment in three years.

Q: What is the Present Value of $500 received in eight years with an interest rate of 8 percent?

A: Given information: Cash flow or Future value is $500, Interest rate is 8%, Number of years is 8

Q: What is thevpresent value of an annuity of 1,600 per year for 10 years, with the first payment…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: What is the present value of $100,000 to be received at the end of 25 years given a 5% discount…

A: Present value if the value of a future amount at current time. Present value formula: Present Value…

Q: If the present value of $444 to be paid at the end of one year is $400, what is the one-year…

A: Discounting is a technique to compute the present value (PV) of future cashflow by considering…

Q: What is the present value of a $1,000 payment made in five years when the discount rate is 10…

A: PV = FV / (1 + r / n)nt Where, PV = Present value FV = Future value r = Rate of interest…

Q: If you were to borrow $9,400 over five years at 0.10 compounded monthly, what would be your monthly…

A: Given data, Monthly rate=0.1012No of periods=5 years×12=60 months

Q: What is the present value of an annuity due of 2,000 per year for 15 years discounted back tobthe…

A: In present value of annuity due, payment is due at the beginning of the year. We need to use formula…

Q: You are comparing two annuities with equal present values. The applicable discount rate is 6.65…

A: The first annuity is an annuity due as its payments starts on the first day of each year. The second…

Q: What is the size of eight equal annual payments to repay a loan of$1,000? The first payment is due…

A: PV = 1000 FV = 0 rate = 10% N = 8 use PMT function in Excel

Q: What is the present value of regular perpetuity paying $1500 per month if the discount rate is 8.4%…

A: Given Information: Monthly perpetual payments = $1500 Annual interest rate = 8.4%

Q: Consider a $5,000 deposit earning 10 percent interest per year for ten years. What is the future…

A: Future Value (FV)Future value is the specific value or amount of an investment at a specific date in…

Q: What is the present value of 500 received at the beginning of each year for 15 years? (Assume the…

A: Given: Present value = 500 Years = 15 Discount rate = 10%

Q: If I loaned an amount of P10,000.00 with an interest rate of 8.60% compounded MONTHLY for 5 years.…

A: Annual interest rate (r) = 8.60% Compounding = Monthly Number of compounding per  year (m) = 12

Q: Which one of the following is the correct formula for computing the present value of $600 to be…

A: Solution: Present value is other ways known as current\ present discounted value.

Q: What is the future value of $400 deposited for one year earning an interest rate of 9 percent per…

A: The provided information are: Present value (PV) = 400 Rate of interest (i) = 9% Number of year (n)…

Q: What's the present value of $4,500 discounted back 5 years if the appropriate interest rate is 4.5%,…

A: Future value=$4500Interest rate=4.5%Number of componding per year=2Time=5

Q: What is the present value of a $200 payment in one year when the discount rate is 7 percent?

A: We require to compute the present value in this question from following details: Future value = $200…

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.