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: A person buys a piece of lot for 100,000 pesos down payment and 10 deferred semi-annual payments of…

A: Quantum and timing of cash flows emanating from an investment decision are known. The present worth…

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 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: a) What is the present worth ofequal payments of $25,000 made semi-annually (i.e., twice every year)…

A: Semi annual payment (P) = $25,000 Interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4%

Q: What is the future value annuity due of RM34,560 for the next 10 years with a discount rate of 12%?…

A: Using the FV function in excel

Q: A. Get the present value of the simple ordinary annuity (Php1000 pesos monthly with 0.0625% interest…

A: The present value of the annuity is the present value of all the streams of cash flows that occur in…

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: Q.6. (a) The Rose Garden company will maintain a garden plot for you for a payment of OMR 75 now,…

A: Annuity is a no. of payments which has equal size and made in equal interval of time. Person…

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: What is the present value of a perpetuity with the annual payment of $4,000 at the annual interest…

A: The present value is used to estimate the current value of a future payment or cash flow. It entails…

Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 10% compounded…

A: A perpetuity is an annuity that gives payments but has no maturity period.

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: How much more is a perpetuity of $8,000 worth than an annuity of the same amount for 10 years?…

A: Present value refers to the method of capital budgeting used for making decisions for investors by…

Q: 9. How much is a periodic payment payable every quarter of a general ord accumulated value is…

A: N = 40 quarters (10 years) Future Value = 220,000 Interest rate = 6.5% compounded semi annually

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: What’s the interest rate of a 5-year, annual $4,800 annuity with present value of $20,000?

A: Given; Present value of annual payments : $20,000 Time period (r): 5 years Annuity: $4,800

Q: ompute the annuity of the money ompounded monthly at the rate o O 665 O 755 O 801

A: Future value of annuity includes the annuity amount deposited and compound interest accumulated over…

Q: What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has…

A: The objective of the question is to find out the annual payment that one must receive to earn a 6.5%…

Q: What is the present value of RM34,580 perpetuity per year discounted at 7%? Select one: a.…

A: In this problem we need to compute the present value of RM34,580 perpetuity per year discounted at…

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: if the annual rate is 5% and the annual infinity (forever) payment is $200, what is the present…

A: A perpetuity is a security that pays for an infinite amount of time.The present value of a…

Q: Calculate the Future Value of 5,000 SAR made at the end of each year for 25 years, with an interest…

A: Future value of the amount is the amount that is being deposited and amount of interest accumulated…

Q: Find the amount of an ordinary annuity of Php18,450 payable quarterly for 3.5 years at 12%…

A: Calculation of value of an ordinary annuity: = Annuity amount * PVAF (interest rate per period,…

Q: 41. The present value of an ordinary annuity of Php 2.350 each year for eight years, assuming an…

A: We require to calculate the present value of annuity from following given details: Annual Payment in…

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: 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: b. If you borrow R13,000 at 8% compounded annually with the repayment schedule below, what is the…

A: Loan amount = R 13000 First payment of amount A occurs in year 2 and last payment is worth (A+600)…

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…

Q: if the annual rate is 10% and the annual infinity (forever) payment is $1000, what is the present…

A: Perpetuity refers to the series of periodic payments that have no ending i.e. investors or…

Q: What should be the interest rate of an investment cost P5,500 that pays P300 in perpetuity

A: Investment cost = P 5,500 Annual payment = P 300

Q: Find the present value of a perpetuity of P15,000 payable semi-annually if money is worth 8%…

A: A perpetuity is a series of continuous payments made at regular intervals. It can also be understood…

Q: What is the present value of RM30,256 perpetuity per year discounted at 7%? Select one: a.…

A: Perpetuity refers to a sequence of payment i.e. periodic payments that are made by an investor into…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: PMT = 58 Period = 13 years  Nominal rate of interest = 7.23% Additional amount = 1000

Q: Q. No. 02: Find the future value of the following annuities. The first payment in these annuities is…

A: Using Excel FV Function

Q: A person buys a piece of property for P100,000 down payment and ten deferred semi-annual payments of…

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

Q: What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $3,000…

A: The objective of this question is to calculate the present value of a 4-year ordinary annuity of…

Q: In a series of semiannual payments of P2,500 each the first payment is due at the end of 4 years and…

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

Q: The present value of an annuity of X pesos payable annually for 10 years, with the first payment at…

A: Present value (PV) = P189,481.25 Interest rate (r) = 5% Number of annual payments (n) = 10 Period of…

Q: Find the amount of an ordinary annuity of Php18,450 payable quarterly for 3.5 years at 12%…

A: Answer -    The future value annuity formula calculates the value at the end of given period i.e. n…

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

A: Data given: Annuity=$2250 Additional at the end of Year 4=$3000 n=4 Interest rate=5% Required:…

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.