What is the present value of this investment if the discount rate is 8%?

Q: What is the present value of £100, growing at 2% per year, to be received every year forever, if the…

A: The present value of a growing perpetuity can be calculated as the sum of all discounted cash flows…

Q: pected to generate fixed annual cashflows for 4 years beginning in 3 years from today. If the…

A: Present value is the equivalent value of the future cash flow today based on timing and interest…

Q: An investment offers $12,000 per year for 20 years, with the first payment occurring one year from…

A: The time value of money concept holds the utmost relevance while determining the future value and…

Q: You deposit $19,000 today in an investment account and the annual rate of return is 12%, what will…

A: Formulas: Future value = Present value *(1+rate)^years

Q: You have a cash of Rs. 100,000 today. What will be its value after 5 years if you make an investment…

A: Present Value = 100,000 Time Period (N) = 5 Interest Rate = 12%

Q: if you can earn 2.5% per year  on your investment how  long  will it take to double your money

A: According to the given question, we are required to compute how long the time period will take to…

Q: How much is the sum of the present value of the expected return over those periods

A: Cash Flows (Year 1-10) (CF) =  $15,000 per year Annual interest rate (r) = 5% Time Period (t) = 10…

Q: What is the present value of your-end-of-year investment of $1000 per year, with the first cash flow…

A:

Q: An investment pays $2,100 per year for the first 7 years, $4,200 per year for the next 7 years, and…

A: The discount rate is 8.20% compounding quarterly. The cash flows have a periodicity of 1 year.…

Q: You invest in a project that is expected to generate fixed annual cashflows for 4 years beginning in…

A: The movement of funds into and out of a financial system or firm over a predetermined length of time…

Q: An investment product promises to pay $500 at the end of the fifth year (year 5), and the payment…

A: Perpetuity:It shows the present value of the cash flows which are payable at equal intervals…

Q: Today (t=0), you invested the starting prinipal of 1536 dollars. At the end of the first, second and…

A: NPV is one of the capital budgeting method based on the time value of money and can be found as the…

Q: n investment will pay $150 at the end of each of the next 3 years, $300 at the end of Year 4, $600…

A: The value of money at present is known as the present worth of the money while the value of money…

Q: How much would $30,000 due in 20 years be worth today if the discount rate is 11.0%?

A: present value=future value1+rn where, r=rate of interest n=number of years

Q: Suppose Karlem invested P20,000 for five years with simple annual interest of 10%. What is the…

A: Simple interest is a method under which interest is calculated on a principal amount. It calculates…

Q: An investment of S12, 000 today will pay out 6 annual payments. The firstpayment will be S2, 500 .…

A: The problem is asking us to calculate the internal rate of return (IRR) for an investment of $12,000…

Q: An investment will pay you $83,000 in five years. Assume the appropriate discount rate is 6.75…

A: The concept of time value of money will be used to solve this question.   We need to find the…

Q: An investment pays $2,100 per year for the first 4 years, $4,200 per year for the next 3 years, and…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: What is the present value of your end-of-year investment of $1,000 per year, with the first cash…

A: According to the time value concept, the purchasing power of a sum of money today is more than the…

Q: If you invest $300 per month at an annual interest rate of 10%, how much will you have after 30…

A: Value of monthly payment after 30 years is calculated as the future value of monthly investment…

Q: You invest in a project that generates fixed annual cashflows of $135 for 5 years beginning in 5…

A: In the above question we are required to find out the present value of annuity due.

Q: In how many years will be the investment to double in value at 5% simple interest rate?

A: Let's assume principal amount be 100, then it would be doubled to 200. Interest rate = 5%

Q: Consider a project in which you have to invest $15,000 today and you will receive $24847 in one…

A: Future Value = $24,847Present Value = $15,000Number of years (n) = 1We need to calculate the…

Q: An investment will pay you $100,000 in 10 years. If the appropriate discount rate is 6 percent…

A: Future value = fv = $100,000 Time = t = 10 * 365 = 3650 days discount rate = r = (1 + (0.06 / 365))…

Q: You invest €188 today. What will be the value of your investment eleven years from now if the…

A: Investment amount = €188 Annual interest rate = 9% Period = 11 Years

Q: is the rate of return on an investment of $9210 if the investor will recieve $2000 each year for the…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: How much will I have 8 years from now, if I will invest P10,741 at the end of cach three months for…

A: Quarterly investment = P 10,741 Period = 3 Years Number of quarterly payments = 3*4 = 12 Annual…

Q: saver wants $100000 after 10 years and believes it is possible to earn an annual rate of 8% on…

A: Amount required = FV = $100,000No of years = nper = 10 yearsInterest rate = rate = 8%Yearly…

Q: Assume you are offered a $20,000 annual payment, made quarterly (m =4). Payments begin in 10 years…

A: First Annual Payment: $20,000 (paid quarterly, for a total of $5,000 every quarter).Payment Start…

Q: ay you $99,000 in 15 years. If the appropriate discount rate is 6.7 percent compounded quarterly,…

A: The given problem can be solved using PV and EFFECT function in excel. PV function computes present…

Q: An investment opportunity requires a payment of $620 for 12 years, starting a year from today. If…

A: Present value : The financial concept used to establish the current valuation of future cash flows…

Q: A 10-year investment will pay $2,500 at the end of this year, and the payments will grow at a rate…

A: Answer: Given data, Future value = $2,500 Required rate of return = 15% Paymets grow @ 5% per year

Q: What is the present value of aperpetuity of $50 per year if theannual interest rate is 10% andthe…

A: The objective of this question is to calculate the present value of a growing perpetuity. A…

Q: An investment requires 15,000 today and produces a yearly cash flow of 700 in perpetuity. Cash flow…

A: Here, Investment today is 15,000 Yearly Cash Flow is 700 in perpetuity Growth Rate is 3%

Q: An investment will pay $500 two years from now, $841 four years from now, and $1,166 five years from…

A: Organizations may analyze and manage risk by knowing the future value of assets or financial…

Q: What is the present value of all these payments using an interest rate of 4%?

A: We have to calculate the present value of the cash flow in all these 10 years In question, cash flow…

Q: An investment will pay ¥13,400 in five years.  What is the present value of this investment today…

A: Present value is calculated by discounting the future cash flow at the discount rate.   Present…

Q: Suppose you have an investment worth $800 and you want it to increase in value by 400%. a) What is…

A: Investment amount = $ 800 Increase in value = 400%

Q: You are looking to invest in a project. The expected return of 5% is used as the discount rate. The…

A: Discount Rate = 5℅ Initial Investment = P6,000,000

Q: You would like to have $19,928 in 12 years. If the rate is 8.45%, how much do you have to invest…

A: Future value required (FV) = $19928 Interest rate (r) = 8.45% Number of annual deposits (n) = 12