What present value amounts to $15,000 if it is invested for 20 years at 6% compounded annually? (Round your answer to the nearest cent.)

Q: How much approx., would be the FW of $30,000 be worth after 50 years if a rate of 10%/yr (compounded…

A: Solved using Financial Calculator  PV = +/- 30,000 N = 50*12 = 600 I/Y = 10/12 = 0.8333 CPT FV =…

Q: What present value amounts to $15,000 if it is invested for 20 years at 8% compounded annually?…

A: Present Value = Future value / (1+r)^n Where, r = rate of interest i.e. 8% n = no. of years i.e. 20…

Q: How long will it take for $4,000 to grow to $7,000 if the investment earns an interest rate of 16%…

A: Given information: Future value is $7,000 Present value is $4,000 Interest rate is 16% compounded…

Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: If $15,000 is invested at 3.5% for 20 years, find the future value if the interest is compounded the…

A: Initial investment (I) = $15,000 Interest rate (r) = 0.035 or 3.5% Period (t) = 20 years Future…

Q: f money is worth 6% compounded annually, what payment 12 years from now is equivalent to the payment…

A: Given, problem relates with time value of money . Present value is compounded at a given rate for a…

Q: A firm is scheduled to receive payment of $68,000 in 2 years.  What is the present value of this…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: A sum of GH¢100 is to be paid at the end of each year for 20 years. The effective compound interest…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: If money can be invested at 3.2% compounded quarterly, which is larger, $10,883 now or $15,000 in 10…

A: Compound = Quarterly = 4Interest rate = r = 3.2 / 4 = 0.8%Future Value = fv = $15,000Time = t = 10 *…

Q: What present value amounts to $11,273.57 if it is invested for 5 years at 10% compounded annual?…

A: Present value is calculated using following equation Present value = Future value1+rn Where, r is…

Q: What is the future value of $6700 a year for 30 years at 10.5 percent interest, compounded annually?…

A: For the calculation of the future value, we will use the below formula   Future value = P*(1+r)n…

Q: At what rate must $700 be compounded for it to grow to $1000 in 7 years?

A: Present value = $700 Future value = $1,000 Number of years (n) = 7

Q: What present value amounts to $25,000 if it is invested for 20 years at 5% compounded annually?…

A: Solution Concept The interest rate compounded annually means the interest is charged on interest and…

Q: Determine the future values if $25,000 is invested in each of the following situations: a. 8% for 20…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: Using the figure above, calculate the future worth (at the end of year 10) of a cash flow series of…

A: Future Value of annuity due is the annuity in which payment is made at the beginning of the period…

Q: a) How much will this investment be worth after 10 years? (Round your answer to the nearest cent.) $…

A: Investment Amount = $49,000 Time period = 10 years Rate of interest = 8% compounded continuously.…

Q: At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years?

A: We use rate function to calculate interest rate

Q: is invested now, $2,400 two years from now, and $3,400 four years from now at an interest rate of 8%…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: Suppose a state lottery prize is to be paid in 25 payments of $240,000 each at the end of each of…

A: Given,  The payment is $240,000 Term of investment is 25 years

Q: long (in years) would $800 have to be invested at 11.6%, compounded continuously, to earn $300…

A: Interest is the return that is earned by an investor on investing a certain sum for a set duration…

Q: Use the present value formula to determine the amount to be invested now, or the present value…

A: The amount needed now can be calculated with the help of present value function

Q: What is the future value if $15,000.00 is invested for 2 years at 10% compounded every 2 months? If…

A: Cash flow related future discounted, time value of money, or TVM, helps account for the consequences…

Q: How many years are needed for P40,000 to yield P13,756.66 if invested at 6% converted semi-annually…

A: Present value (PV)= 40,000 Interest amount = 13,756.66 Rate of interest = 6% Semi-annual interest…

Q: If the $150,000 had been compounded continuously for 10 years at interest rate r, the balance would…

A: Continuously compounded interest: It is the interest calculated on both the original principal and…

Q: 3. Determine the future values if OMR5,000 is invested in each of the following situations: a. 5…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: 1 How long it will take for a sum of money to quardruple at 10% compounded annually? [ans:11.51%].…

A: Solution Concept The interest rate compounded annually means the interest is charged on interest and…

Q: How much would an initial amount of $4000, compounded continuously at 5% annual interest, become…

A: Compound interest is the interest which is computed by multiplying the principle amount with the…

Q: What is the present value of the following future payments: (a) $6,000 ten years from now at 9%…

A: The money's time worth concept reveals that any sum of money is worth more currently as compared to…

Q: How many years will it take to turn $100,000 into $1,000,000 if invested at 5.10% per year,…

A: To calculate the time it will take for an investment to grow from $100,000 to $1,000,000 at a…

Q: What is the future value of $80,000 received today after 14 years if it is invested at 8% compounded…

A: Time value of money is one of the important concept being used in finance. It says that a dollar…

Q: What's the future value of $20,000 after  8 years if the appropriate interest rate is 5.75%,…

A: The formula to compute future value at compounded interest as follows:

Q: What is the present value of a $100 payment due in 10 years at 1%?  At 10%?  At 15%?

A: Present Value = Future Value / (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: Find the present value of the following future amount. $500,000 at 9% compounded annually for 25…

A: The present value can be calculated by discounting the future amount.

Q: An investment will pay $19,691 in 19 years. If the interest rate is 12.24%, how much is it worth…

A: The value of the investment after some period is the future value. Worth of future amount today is…

Q: What present value P amounts to $290,000 if it is invested at 6%, compounded semiannually, for 17…

A: In the given question the maturity value of investment (i.e., Future Value) is $ 290,000. This is…

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.