What is the present value of $ 42,000 to be received 6 years from today, assuming an annual discount rate of 9 percent? Round your answer to 2 decimal places

Q: Find the present value of the given future amount. $43,000 for 22 months at 5% simple interest

A: Answer  Future Value $43,000 Time 22 Months Period In Years 1.83 Years Rate 5%

Q: What is the future value of an account if $8,000 is invested at a rate of 7% compounded monthly for…

A: Future Value = P * (1 + i/n)(n x t)Where: P = Initial Invested amount i = Annual interest rate n =…

Q: Find the present value of the given future amount. $31,000 for 9 months at 8% simple interest What…

A: The Time Value of Money states that a dollar earned today is more valuable than any time in the…

Q: What is the present value of $5,000 that will be paid to you eight years from today at 8% interest?

A: Data given: FV=$5000 n=8 years i=8% (assumed compounded annually)   Required= PV

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: 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: If you borrow $15,500 with a 5 percent interest rate to be repaid in seven equal payments at the end…

A: Answer of the given question is below with the proper explanation. Note-final answer is rounded at…

Q: Starting the beginning of next year, you expect to receive four consecutive annual payments of $700…

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

Q: What is the present value of $7,280 payable at the end of 9 years? Use a nominal rate (monthly…

A: Present value is a financial concept used to measure the present value of money in the future and to…

Q: If I invested an amount of money compounded monthly for 10 years with a discount rate 8.53 %. What…

A: Effective interest rate is interest rate after considering the impact of compounding on the interest…

Q: The future value of $900 saved each year for 10 years at 8 percent. (Round your discount factor to 3…

A: Future value refers to the future worth of a present sum or a stream of cash flows. The future value…

Q: What amount must be set aside now to generate payments of $30,000 at the beginning of each year for…

A: Annual payment (P) = $30,000 Interest rate (r) = 5.52% Period (n) = 10 Years

Q: A property will provide $12,870 at the end of each year forever. If its value is $132,000, what must…

A: Given: Property will provide $12870 at the end of each year. Current value = $132000

Q: You will receive annual payments of $4,000 at the end of each year for ten years (10 payments). The…

A: Given PMT (periodic payment) = $4000 nper (time) =10 rate =9%

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: How much would you have to invest today to receive: Use Appendix B and Appendix D. (Round "PV…

A: Present value is the equivalent value of money today based on the time value of money that is going…

Q: borrow $9,100 over five years at 0.13 compounded monthly, what would be your monthly payment? Round…

A: Annuity - Annuity means the amount of series of payments based on fixed intervals periods. The…

Q: Find the present value of the given future amount. $59,000 for 3 months at 5% simple interest What…

A: Here,FutureValue is $59,000Rate is 5%Time is 3 months or 0.25 years

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: You will receive $1,000 forever starting from the end of next year. The account pays  10% compounded…

A: The PV of an investment refers to the combined worth of the cash flows of the investment after they…

Q: What is the value today of receiving $2,581.00 per year forever? Assume the first payment is made…

A: A perpetuity is a series of fixed payments with no maturity date. In simple words, perpetuity is an…

Q: What is the final amount of $2696 payable every three months for 5 years and 9 months, if money is…

A: Here, Quarterly Payment is P2696 Time Period is 5 years and 9 months Time Period in Quarters  (n)…

Q: You will receive $1,000 forever starting from the end of next year. The account pays 10% compounded…

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

Q: Calculate the present value of $4,500 due in 5.5 years. Use a discount rate of 9% compounded…

A: Discounting is a way to find the PV of future cashflows by considering appropriate rate or PVF. It…

Q: If you were to borrow $9,600 over five years at 0.12 compounded monthly would be your monthly…

A: Please refer to the image below.

Q: What is the accumulated value of €1,000 at the end of 5 years if the nominal discount rate…

A: Initial investment (I) = €1,000Monthly discount rate (r) = 0.01 (i.e. 0.12 / 12)Monthly period (n) =…

Q: ow much must be invested now to receive $23,000 for 10 years if the first $23,000 is received one…

A: Present value of an annuity: It is the value of all future payments at the present date at some…

Q: Find the present value of the given future amount. $43,000 for 3 months at 9% simple interest What…

A: Lets understand the basics. Present value is a value of any future amount into present. For…

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: You are paid £2,500 annually for 6 years, with the first payment due in one year and the last…

A: Present value = Annuity * PVA of 1

Q: Find the present value of the given future amount. $74,000 for 23 months at 7% simple interest

A: Future value = fv = $74,000 Time = t = 23 / 12 years Interest rate = r = 7%

Q: What is the present value of the following payment stream, discounted at 8% annually: $1,000 at the…

A: The present value concept of the time value of money states the current value of money that is being…

Q: How much should be invested each year for 10 years to provide you with $8000 per year for the next…

A: Present value includes the value without interest rate and future value includes the value with…

Q: What is the present value of $2,000 per year, at a discount rate of 6.5 percent, if the first…

A: Present value (PV) is the current value of a future payment or a stream of future payments,…

Q: What is the present value of $6,000 paid at the end of each of the next 87 years if the interes The…

A: Present value is today equivalent value of cash flows that are to be received in the future period…

Q: What is the present value of a $1,300 payment made in five years when the discount rate is 10…

A: Step 1: Step 2: Step 3: Step 4:

Q: What is the present value of a $360 payment in one year when the discount rate is 9 percent? (Round…

A: Payment in 1 year (P1) = $360 n = 1 year r = 9%

Q: What nine-year annuity cash flow (i.e., annual cash flows for 9 years) will generate a 5.0% return…

A: PV is the present value (initial investment): $17,000.C is the annual cash flow of the annuity (what…

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.