What is the present value of a $90,000 annual annuity for 10 years with an additional $1,000,000 received at the end of the 10th year if the current level of interest rates is 8 per cent? $1.9M $1.363M $1.067M $1.167M

Q: What is the present worth of a 3 years annuity paying P300,000.00 at the end of each year, with…

A: Solution: Present value of annuity is the present value of annual amount to be paid/ received…

Q: Present Value of an Annuity What is the present value of a $1,600 annuity payment over 6 years if…

A: An annuity refers to a series of cash flows occurring at regular periodic intervals. Here the amount…

Q: You have a $50,000 twenty year growing annuity earning 8 percent interest compounded annually.…

A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money or…

Q: What is the future value annuity due of RM32,000 for the next 10 years with a discount rate of 8%?…

A: Amount of Annuity = RM 32,000 Years(n) = 10 Interest Rate(r) = 8% Future Value of Annuity = RM…

Q: What is the present value of a $300 annuity payment over 5 years if interest rates are 8 percent?

A: Details given are : Annual cashflow = $300 time period = 5 years Interest rate = 8% We require to…

Q: What is the value now of an annuity that paysf $6,000 at the end of each of the next 92 years…

A: Present value of annuity is equivalent value of annuities that would give same cash flow based on…

Q: How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the…

A: We have the following information: Annuity: $24,000 Rate of Interest: 5%

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: You are currently at time period 0, and you will receive the first payment on an annual payment…

A: Annuity is the series of equal cash payments over the period.

Q: What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $3,000…

A: Data given: Annuity=$2250 Additional at the end of Year 4=$3000 n=4 Interest rate=5%   Required:…

Q: Present Value Find the present value of an annuitythat will pay $500 at the end of each 6-month…

A: Given information: Annual deposit amount is $500 Interest rate is 10% compounded semi-annually…

Q: 1.Should the proposed project be accepted based on the profitability index (PI)? Why or why not?…

A: Profitability index is referred as the measure of the attractiveness of the investment or the…

Q: What is the present value of a perpetuity with the annual payment of $4,000 at the annual interest…

A: The present value is used to estimate the current value of a future payment or cash flow. It entails…

Q: What is the present value of receiving $1,000 at the end of each year for 6 years, assuming 7%…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 1) An Annuity of $1200 paid every quarter for 10 years has a current/present value of $ 32826.58.…

A: The first part of the question is asking for the interest rate of an annuity. The formula for the…

Q: How much more is a perpetuity of $8,000 worth than an annuity of the same amount for 10 years?…

A: Present value refers to the method of capital budgeting used for making decisions for investors by…

Q: A growing annuity pays $1,000 at the end of the second year (t=2). The payment grows 3% per year…

A: Payment after second year = $1000 Number of payments = 5 Growth rate = 3% Discount rate = 8%

Q: The present value of a $1,000 per year perpetuity at an annual rate of 10% is $10,000.  What is the…

A: Answer:

Q: What’s the interest rate of a 5-year, annual $4,800 annuity with present value of $20,000?

A: Given; Present value of annual payments : $20,000 Time period (r): 5 years Annuity: $4,800

Q: The initial cost of an investment is $60,000 and the discount rate (cost of capital) is 8%. The…

A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…

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 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 is the present value of a 15 year annuity with the first payment of $65,000 (all payments are…

A: present value of a 15 year annuity with the first payment of $65,000 (all payments are the same…

Q: if the annual rate is 5% and the annual infinity (forever) payment is $200, what is the present…

A: A perpetuity is a security that pays for an infinite amount of time.The present value of a…

Q: If you invest $8,000 at the end of every year for nine years at an interest rate of 8%, the balance…

A: A present asset's future value, abbreviated as FV, is the value that an asset is expected to have at…

Q: present value of an ordinary back to the present at 10 percen as

A: The present value of the annuity can be computed as follows : Calculations for above :

Q: Given a 10 percent discount rate, what is the present value of a perpetuity of 51,000 per year if…

A: perpetuity is a security that pays for an endless measure of time. In money, interminability is a…

Q: What's the present value of a perpetuity

A: Perpetuity means a series of equal infinite cashflows, that occur at end of each period with…

Q: What is the future value of a 3-year, $100 ordinary annuity if the annual interest rate is 10%?

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: perpetuity

A: Formula for present value of perpetuity: Present value of perpetuity = PMT/i Where PMT is the annual…

Q: Money is worth 12% compounded quarterly. What is the future value of the annuity payir arterly for…

A: Future value of money grows with interest rate and period of deposit and while present value…

Q: IBM networks want to modernize their networking system. Proposals have been received from two major…

A: Hi thanks for the question. Multiple questions are posted, as per guidelines expert can answer only…

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: An annuity pays $11 per year for 100 years. what is the future value (PV) of this annuity at the end…

A: Using The Future value function in excel

Q: What is the present value of a $1,340 per year annuity for five years at an interest rate of 12…

A: The interest rate represents the percentage of the principal amount either charged for borrowing or…

Q: Present Value of an Annuity Estimate the present value of an annuity if payments are $1300 monthly…

A: Annuity is when the payments are for fixed period of time and payments are made at uniform and…

Q: Future and present value of an annuity Find the future and present value of a 20-year ordinary…

A: Fixed Annuity: In a fixed annuity, the payments are predetermined and remain constant throughout 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: if the annual rate is 10% and the annual infinity (forever) payment is $1000, what is the present…

A: Perpetuity refers to the series of periodic payments that have no ending i.e. investors or…

Q: What is the future value of an $800 annuity payment over 15 years if the interest rates are 6…

A: In this question we require to calculate the future value of annuity. Annuity amount (PMT) = $800…

Q: An annuity pays $13 per year for 100 years. what is the future value (PV) of this annuity at the end…

A: The future value is the value of the annuity payments at the end of the annuity term.

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

A: PMT = 58 Period = 13 years  Nominal rate of interest = 7.23% Additional amount = 1000

Q: •An insurance company offers to pay you $1,000 per year for 10 years if you will pay $6,710 up…

A: We can solve this using Present value of annuity formulaPresent value of annuity is =…

Q: C- What must YOU invest today to receive an annuity of $4,500 for 10 years compounded at 8%…

A: Here, present value of a quarterly annuity needs to be determined. Annuity “PMT” of $4500 every…

Q: What is the future value of an annuity due if your required return is 10%, and annual payments are…

A: The time value of money is a core principle in finance, asserting that a given amount of money today…

Q: $11,000 annually at 5% for 10 years.

A: The present value of annuity can be calculated by using the EXCEL PV function. The same is as…

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.