What is the present value of regular perpetuity paying $1500 per month if the discount rate is 8.4% APR compounded monthly?

Q: Find the present value of a perpetuity paying $50,000 annually if the discount rate is 6%.

A: In the given question we require to calculate the present value of a perpetuity. In case of…

Q: What is the present value of an ordinary annuity of $1,000 per year for 9 years discounted back to…

A: Present value of annuity payment - it means present value of future annual equal payment made to a…

Q: Help

A: Perpetuity in the monetary framework is a circumstance where a cash of income installments proceeds…

Q: What is the discounted value of payments of $38.00 made at the end of each year for 8 years if…

A: The time value of money is the foundational concept in finance which takes into account the effect…

Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $2,000 monthly?

A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…

Q: Calculate the present value of a perpetuity of $500 per year if the market interest rate is 6%.

A: Given details are : Perpetuity amount = $500 Market Interest rate = 6% We need to compute the…

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: An annuity due has four payments, $2000 each. What's the present value of the annuity due at a 6%…

A: Annuity due is that annuity in which payments are made at the start of each period. This is in…

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: Find the present value of an annuity of $ 365.00 per month for 26 years at a rate of 3 1/4% interest…

A: Monthly payment (P) = $ 365 Period = 26 Years Number of monthly payments (n) = 26*12 = 312 Annual…

Q: What is the dollar difference (on an absolute basis) in the present value of receivin $9,000…

A: Present value illustrates the current value of a sum of money that will be received or paid in the…

Q: what is the present value of the perpetuity?

A: Present Value: It represents the present worth of the perpetual/constants cash flows. It is…

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: A monthly perpetuity of $100 will start 6 months from today.  If the discount rate is 6% APR…

A: Interest rate = 6% p.a. compounding monthly I.e. 6/12 = 0.5% for one month Monthly payment amount =…

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 is the future value of $2,500 deposited for one year earning a 14 percent interest rate…

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

Q: What is the present value of a 3-year annutiy of $220 if the discount rate is 6%.

A: Annuity (pmt) = $220 Time Period (nper) = 3 years Discount Rate (rate) = 6%   The calculation of the…

Q: A regular monthly perpetuity starts with a $925 payment next month, and grows at a rate of 3.72% APR…

A: Given: Monthly payment = $925 Growth rate = 3.72% Discount rate = 7.8%

Q: How much money do you need now to set up a perpetuity that pays $2,000 at the end of each quarter if…

A: Perpetuity used to defined as an annuity, which is without any of an end or used to be said that…

Q: the discount rate is 7.6%, what would you be willing to pay for receiving a payment of $700 eve

A: Value of any annuity is the present value of cash flow from the annuity based on time and interest…

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 present value of a regular $1,000 60-month annuity, if r is 6% APR compounded monthly?

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: What is the present value of an ordinary annuity of $1,600 per year for 6 years discounted back to…

A: In the given question we require to compute the present value of ordinary annuity. Annuity payment =…

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: 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: An annuity due pays $17,250 every year for the next 6 years and earns a 7.34% annual return. How…

A: Annuity Due = a = $17,250Time = t = 6Interest Rate = r = 7.34%Type Payment = due = at the beginning

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: What is the present value of a ten year annuity whose payment will be $20,000 next year and then…

A: Time = t = 10 YearsPayment = p = $20,000Growth Rate = g = 3%Discount Rate = r = 6.4%

Q: Suppose payments were made at the end of each quarter into an ordinary annuity earning interest at…

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

Q: How much less is a perpetuity of $2,000 worth than an annuity due of the same amount for 30 payments…

A: Given information: Annuity : $2,000 Number of payments : 30 Rate of interest : 10%

Q: What is the future value of a $590 annuity payment over four years if interest rates are 8 percent

A: An annuity refers to a series of cash flow that occurs on a periodic basis. Here $590 is occurring…

Q: What is the present value of $200 per year, at a discount rate of 18.25 percent, if the first…

A: Annuity Amount is $200 Discount Rate (r) is 18.25% First Payment is received is 6 years from now…

Q: What is the price of a perpetuity that pays $17.50 semi-annually and the required rate of return is…

A: In this question we need to compute the price of perpetuity that pays $17.50 semi-annually.

Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $1,000 monthly?

A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…

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: A perpetuity will make a sequence of annual payments of 2800, 3000, 3200, ..., with the first…

A: A perpetuity is a type of annuity. To be more specific a perpetuity is that annuity that goes on…

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: If a 48-month annuity has a present value of $6,700 and an annual discount rate of 5.8%, then how…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: What is the price of a perpetuity that pays $50 annually and the required rate of return is 6%?

A: In this question we need to compute the price of a perpetuity.

Q: What are the annual cash flows (in $) of an annuity for 19 years, which costs $48,783 today, if the…

A: The sequence of periodic payments or receipts that are made as part of an annuity contract over time…

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: An annual perpetuity has a constant cash flow of $1000.  If the interest rate is 7% compounded…

A: Given, Annual cash flow: $1,000Interest rate: 7%Present value of perpetuity=Annual cash…

Q: What is the present value of a $1,000 60-month annuity due, if r is 6% APR compounded monthly?

A: The time value of money is applied in the case of calculation for the present value of the annuity.…

Q: ind the present value of a perpetuity starting at time 10 paying 100 nnually if the interest rate is…

A: A perpetuity is an annuity that goes on forever. In other words a perpetuity, as the name indicates,…

Q: What is the present value of an annuity of P150,000 payable at the end of each 6-month period for 2…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

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.