What is the present value of $4000 to be received in 5 years if the interest rate is 8% p.a.? a. $5752 b. $2400 c. $5877 d. $2722

Q: What is the Future Value?

A: Future Value: It represents the future worth of the present amount and can be estimated by the…

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Q: 1. What's the future value of $1,500 after 5 years if the appropriate interes rate is 6%, compounded…

A: using the Fv function

Q: None

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A: Period (N) = 36 Annuity (A = PMT) $100 Present value (PV) = $1,000 Future value (FV) = $12,000 Type…

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A: The objective of the question is to prepare an amortization schedule for a five-year loan of $67,500…

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A: P is the present worth of cash flows that are expected to happen in the future.

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A: Present value of future cash flow is computed by following formula-PV = FV ÷ (1+r)nWhere,PV =…

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A: Annual Payment = p = $5000Interest rate = r = 15%

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A: Present Value Means The Current Value Of Money Received In The Future, At a Specified Rate Of…

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A: Compound = Quarterly = 4Payment = pmt= $275Future Value = fv = $4780Time = nper = 4 * 4 = 16Present…

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A: Investment amount (PV) = $205,000 Interest rate (r) = 12% Period (n) = 7 Years

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A: Payment = p = $4000Time = t = 8Discount Rate = r = 9%Payment Type = at the beginning

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A: Amount after 3 years= $5,500 Years =3 Interest Rate(r) =10% Let Present Value of $5500 = P

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A:

Q: V F11 Harley- { [ C F13

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Q: QUESTION 2 The future value of 10,000 in 15 years if the interest rate is 12% compounded monthly is…

A: Present value (PV) = -10,000Years = 15Interest rate = 12%Compounding = monthly, therefore M = 12

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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.