What is the value today of an investment that will pay $3,947.00 every six months for 27 years? Assume the first payment is made 5 years from today. The annualized interest rate is 9.00%
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N1
What is the value today of an investment that will pay
$3,947.00
every six months for 27 years? Assume the first payment is made 5 years from today. The annualized interest rate is
9.00%
p.a.
Step by step
Solved in 2 steps with 2 images
- What is the future value of $6000 invested for 4 years, if the interest rate is 12% p.a., compounding quarterly? A. $9441 B. $9628 C. $9686 D. $8880What is the present value (PV) of an investment that pays $90,000 every year for four years if the interest rate is 9% APR, compounded quarterly? O A. $347,535 B. $318,574 OC. $376,496 O D. $289,6132. Find the rate of interest and final amount resulting from an investment of P800 at 12% simple interest for 1 1/2 years. 3. How long will it take an investor to earn an interest of P450 on P1,000 at 12%?
- An investment becomes P 4,500,000 four years from now and becomes P 5,250,000 thirteen years from now. a. Assuming rate of compounded interest remains constant through time, what was the investment's value on the present time? b. What rate of interest compounded quarterly is equivalent to the interest rate of the given investment? c. What rate of interest compounded monthly is equivalent to the interest rate of the given investment?38. Compounding intervals (S2.4) You are quoted an interest rate of 6% on an investment of $10 million. What is the value of your investment after four years if interest is compounded: a. Annually? b. Monthly?What is the present value (PV) of an investment that pays $80,000 every year for four years if the interest rate is 6% APR, compounded quarterly? A. $331,614 B. $276,345 C. $359,248 D. 303, 979
- What's the future value of $1,225 after 5 years if the appropriate interest rate is 6%, compounded monthly? a. $1,900.19 b. $1,652.34 c. $1,751.48 d. $1,371.44 e. $1,272.30Question 1 If the interest payments are done semi-annually, what is the initial investment to be so that 6 years later the amount will be TL84.000? Interest rate is 26% pa. Your answer: 3,621 O 19,379 22,992 25,347 50,694What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per year? O $15,208.16 O$25,736.89 O $19,887.59 O $23,397.17
- What would be the future value of $7,992 invested annually for nine years beginning one year from now if the annual interest rate is 10 percent? (Round answer to 2 decimal places, e.g., 1,220.25.) Future value . . $Q1: Calculate (PW) for annual payments (900$/year) if the first payment will deposit at the present time, and the last one will deposit at begin of the ninth year? If you know that it's on deposit at the fifth year, and the interest rate is (15%)!20. Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is the effective annual interest rate on this investment assuming that interest is compounded (a) annually? (b) semiannually? (c) quarterly? (d) monthly? (e) daily (365 days)? (f) continuously? (Note: Report your answers accurate to four decimal places e.g., 0.0987 or 9.87%.)