What’s the present value of a perpetuity that pays Php250 per year if the appropriate interest rate is 4.76%? A. Php4,750 B. Php5,000 C. Php5,250 D. Php5,513 E.Php5,788

Q: Find the present worth of perpetuity of Php10,000 payable quarterly if money is worth 10% compounded…

A: Quarterly payment = Php 10,000 Interest rate = 10% Quarterly interest rate = [{1+(0.10/12)}12]1/4-1…

Q: A perpetuity has a PV of $25,000. If the interest rate is 11%, how much will the perpetuity pay…

A: A perpetuity is a cash flow that goes on forever. In other words the time period for a perpetuity is…

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: What is the PRESENT VALUE and the AMOUNT of a Php7,500 ordinary annuity payable quarterly for 12…

A: Quarterly payment (C) = Php7,500 Quarterly period (p) = 48 (i.e. 12 years * 4) Quarterly interest…

Q: $27,831.47 $29,851.84 E S29,083.89 $30,729.84

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: The buyer of a lot paid P110,000 down payment and agreed to pay P35 000 at the end of each six…

A: The cash price can be found by adding up the downpayment and present value of the annuity. The…

Q: Php 25 000 is deposited every 3 months for 3.5 years at 10% compounded monthly, what is the future…

A: Quarterly deposit (D) = Php 25000 Interest rate = 10% Quarterly interest rate (r) = [1+(0.10/12)]3-1…

Q: How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the…

A: We have the following information: Annuity: $24,000 Rate of Interest: 5%

Q: f money is borrowed today with an amount of P50,000.00 and subjected to a 9% compounded quarterly…

A: In this we need to find out present value factor and from that we can get the quarterly payment.

Q: 4. What is the equivalent amount today of an annual deposit of Php200000 for 15 years if money is…

A: Solution : Equivalent amount today of annual deposit means that amount which was represent the…

Q: Find the present worth of perpetuity of Php10,000 semi annually with an interest rate of 10%…

A: Solution Given Semiannual annuity 10000 Interest rate 10% quarterly First payment…

Q: Compute for the amount and the present value of an ordinary annuity of 12 annual payments of Php…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: A lender is promised a $100 payment (including interest) one year from today. If the lender has an…

A: A lender is promised $ 100 payment including interest one year from today. Simply stating, A lender…

Q: I) II) What is the present value of 10 payments of 1500 riyals each, at a rate of 12%? A loan of…

A: Present value is an estimate of future cash flows discounted at an assumed interest rate over a…

Q: What's the present value of a 4-year ordinary annuity of Php2,250 per year plus an additional…

A: Present Value = Future Value × PV Factor   Pv Factor = 1(1+r)n

Q: 3. When will Php 30,000 earn interest of Php 15,000 if it is invested at the rate of 7.5% compounded…

A: Time value of money concept says that a sum of amount invested today will have more value in future…

Q: NPV Simes Innovations, Inc., is negotiating to purchase exclusive rights to manufacture and market a…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Find the present value of the amount each annuity in each of the following problem.

A: Present value of annuity can be calculated using the following formula;    PV = C x |1-1 + r-n| /r…

Q: 2. An investment promises to pay a perpetuity of $100 per year starting from today. If the discount…

A: A perpetual annuity is a never-ending series of equal cash flows where the investment is done today…

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: If you put up $30,000 today in exchange for a 6.50 percent, 15-year annuity, what will the annual…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: Suppose you wish to borrow Php 20,000,000 to buy a parcel of real estate. The lender is willing to…

A:

Q: P= P1,000 r= 5% t=5 years m=2 What is the present value of an annuity due?

A: Payment (P) = P 1000 r = 5%, m = 2, hence semiannual compounding Effective interest rate (r) = (1 +…

Q: Qnl. A series of payments of 700 Riyals is made at the end of each quarter in an account for 5…

A: When an individual or company is making series of payments for the particular period of time then,…

Q: Suppose you wish to borrow Php 20,000,000 to buy a parcel of real estate. The lender is willing to…

A: LONA AMOUNT = 20000000 RATE OF INTEREST = 10% DURATION 10 YEARS MONTHLY PAYMENT AMORTIZATION FACTOR…

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: IF A PERPETUITY IS WORTH P 500,600.00 AND WITH AN INTEREST OF 16.25%, WHAT IS THE ANNUITY? IF MONEY…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: How is the accumulated value 12,373.78 if yearly payments of 20,000 are made?

A: Solution:- When an equal amount of payment is made each period at the beginning of period, it is…

Q: What is the present value of a perpetuity of P150,000 payable quarterly if money is worth 4%…

A: Quarterly payment = Q = P 150000 Interest rate = 4% semiannually

Q: What is the present value of an annual annuity payment of Php7,000 made for 12 years with a required…

A: Present value of annuity due is computing the value at the end of the number of periods given using…

Q: 2. Find the present value, in pesos, of an annuity of P20,000 payable annually for 8 years, with the…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: If you deposit RM15,000 in an account earning 20% with semi annually compounding, how much would you…

A: Compounding is a way to find the FV of a deposited amount by considering the appropriate rate for…

Q: (Present value of an annuity) What is the present value of the following annuities? a. $2,400 a year…

A: Present value of annuity is calculated by discounting all the future cash flows at a given discount…

Q: Find the present worth of perpetuity of P 20,000 payable quarterly if money is worth 10% compounded…

A: Quarterly payment (P) = P 20,000 Interest rate = 10% Quarterly interest rate (r) =…

Q: Directions: Find the present value P and future valueF of the following ordinary annuities. Write…

A: Using excel PV and FV Function

Q: If money is borrowed today with an amount of P50,000.00 and subjected to a 9% compounded quarterly…

A: In this we have to calculate the present value factor and calculate the payment.

Q: If you put up $29,000 today in exchange for a 7.25 percent, 13-year annuity, what will the annual…

A: An annuity refers to a payment series that is provided in exchange for a lump sum payment. It is…

Q: 5. What is the amount of each annuity payment if a 5-year ordinary annuity has a future value of Php…

A: The ordinary annuity would be providing the valuation of income added at the end of each year to get…

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.