will the real value of the $100 payoff be in terms of today’s dollars?

Q: What is the value today of $4,300 per year, at a discount rate of 10 percent, if the first payment…

A: First payment is received 6 years from today and last 20 years from today. Therefore, total payments…

Q: Suppose an investment will pay $25,000 in 39 years from now. If you can earn 11.05% interest…

A: Calculate the present value as follows: Present value = Future value / (1+rate)^years.

Q: Suppose your opportunity cost (interest rate/year) is 11% compounded annually.  How much must you…

A: Hi there! Thank you for the question. Post has multiple questions. As per company guidelines expert…

Q: 30. You will receive $100 from a savings bond in 3 years. The nominal interest rate is 8%.   a.…

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

Q: Suppose the interest rate is 6.9% APR with monthly compounding. What is the present value of an…

A: Interest rate = 6.9% Semi annual interest rate (r) = [1+(0.069/12)]6-1…

Q: Suppose that an investment promises to pay a nominal 9.6 percent annual rate of interest. What is…

A: According to the rule, we will answer the first three subparts, for the remaining subparts, kindly…

Q: Assume that you borrow $5000 and pay back the $5000 plus $250 in interest at the end of the year.…

A: Real interest rate: Principle = $5,000 Interest = $250 Interest rate =  2505,000×100%=5%

Q: Given an interest rate of 4.8 percent per year, what is the value at date t = 10 of a perpetual…

A: Note: The payments start at t = 20, indicating perpetuity payment made at the end of t = 19.  This…

Q: f you wish to save $875,000 in three years, how much would you need to deposit at the start of each…

A: Principal amount invested to save $ 875000 is $ $ 744,941 so to start depositing at the beginning of…

Q: d it will become $ 6,000 at the end of 4 years, determine the nominal rate of interest and the…

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

Q: If you borrow $5000 at an APR of r (as a decimal) from a lending institution that compounds interest…

A: Interest rate is the proportion of amount loaned on which a lender charger as interest to the…

Q: Suppose you invest $1,400 for seven years at an annual percentage rate of 8 percent. a. What is the…

A: Future Value = Present value * (1+r)^n Where r = rate per period  n = no. of compounding period…

Q: How much money would you have at the end of 15 years if you initially invested $7,500 at a nominal…

A: Concept. A = P (1 + r)n  Where A = amount including compound interest. P = principal amount R = rate…

Q: Suppose you wish to retire in 41 years on a fixed income equiva- lent to $66,000.00 in today's…

A: Yield = 5.3% N = 41 Inflation rate = 2% Future Value Required = Present Equivalent * (1+Inflation…

Q: What interest rate must your bank offer if you want your $2,730 invested today to grow to $3,470 in…

A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…

Q: Assume you make a deposit of $7,500 now into a saving account that pays 12% per year, compounded…

A: Interest refers to the amount charged by the lender on the lent amount. The borrower of the loan is…

Q: Which one is the approximate periodic interest rate % on a Treasury bill that you purchase for 4,908…

A: Future Value = present Value * (1+ rate * time)

Q: Banks sometimes quote interest rates in the form of “add-on interest.” In this case, if a 1-year…

A: Annual percentage rate (APR) refers to the annual cost of funds borrowed. The APR is usually…

Q: You are considering taking out a loan of $14,000.00 that will be paid back over 8 years with monthly…

A: Equity in a home refers to how much of that home's value a person has already invested in it.

Q: A man deposits P100,000.00 in a bank at 7% compounded monthly for 6 years. If the inflation rate of…

A: Deposited amount = P100,000 Interest rate = 7% Time period = 6 years Inflation rate = 6.75%

Q: Using the rule of 72, calculate how quickly $10,000 will double to $20,000 at interest rates of 2…

A: At 2% interest rate: Number of periods = 72 / interest rate Number of periods = 72 / 2% Number of…

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 6 years with monthly…

A: Unpaid balance can be calculated by using loan amortization formula mention below. Unpaid loan(Loan…

Q: You purchase a TIP note with an onginal principal amount of $1,000,000 and a 4 percent annual coupon…

A: TIP note pays coupons as per the semiannual inflation rate in a given period. If inflation is…

Q: You have an investment account that started with $4,000 10 years ago and which now has grown to…

A: (a)  Holding period return = (Investment at end - Investment at beginning) / Investment at beginning…

Q: Today you deposit $1000 into a new investment account. You make the same deposit one month later,…

A: Correct answer 4th option, 0.500%.

Q: Find the interest rate (or rates of return) in each of the following situations. You borrow $700…

A: a) Rate = (future value/present value)^(1/n) -1

Q: You purchase a TIP note with an original principal amount of $1,000,000 and a 10 percent annual…

A: The interest is an expected minimum return on the investment made by the investor. The coupon…

Q: Assume you make monthly deposits of $3,000 now into an account that pays 12% per year, compounded…

A: the quoted interest rate is always annual interest rate. depending on the compounding frequency, we…

Q: F=19803 5% 10% 15% $2X $3X $3X Select one: O a. 3500 O b. 2000 O c. 10000 O d. 3000 O e. 5000

A: Future Value = Sum of Amount * ( 1 + rate )years

Q: Given an interest rate of 5.7 percent per year, what is the value at t = 8 of a perpetual stream of…

A: Annual Payment = $4,100Interest Rate = 5.7% Calculation of value of perpetuity:

Q: In this problem: How much is the present value of monthly deposits of 500 in 8 years if the interest…

A: The present value of the amount represents the current value of the future cash flows. The…

Q: Assume a 360 day year, when a 48,000, 90 day, 8% interest bearing note payable matures, the total…

A: Total payment = Note + Interest   Interest = $48,000 * 8% * 90/360 Interest = $960

Q: You will receive $1000 from a savings bond in3 years from now. The nominal interest rate is 8% and…

A: Future value is the value of present cashflow compounded at a given rate to future date. formula:…

Q: 1. Compute the present value of a $2,000 deposit in year 1, and another $1,500 deposit at the end of…

A: Present value means the actual amount is adjusted with the interest rate so as to get the present…

Q: Assume the nominal interest rate is 12 percent and the expected rate of inflation is 8 percent.…

A: 1)Given: Nominal rate of interest=12% Inflation rate=8% To find: Real rate of interest Solution: As…

Q: If you invest $2,589.70 in an account earning an annual interest rate of 2.539% compounded monthiy,…

A: In order to achieve a goal in future, an investment can be made at present date so that when the…

Q: What is the value today of $5,100 per year, at a discount rate of 7.9 percent, if the first payment…

A: Given: Note: First payment in 6years, that means at the end of year 5.

Q: What is the Discounted Present Value (DPV) if you expect to receive $8,000 in year 1, $9,000 in year…

A: Discounted present value is the value of money that will be received in future ,  the interest rate…

Q: If Samantha invests $700 today in an account that pays 4% interest compounded annually, how much…

A: Hi, since there are multiple questions posted, we will answer first three questions. If you want any…

Q: 1. What is the future amount of my Php 100, 000 after 5 years if I invest today at a rate of 12 %…

A: Invested amount (X) = Php 100000 n = 5 years Interest rate = 12% Inflation rate = 8% Let the actual…

Q: You are considering investing $8,500 in a bank term deposit for 5 years. The term deposit will pay…

A: Whenever we make investment with bank or any financial institution, then they provide us interest…

Q: You deposit $4,000 today, $5,000 one year from now, and $7,000 three years from now. How much money…

A: Information Provided: Year 0 investment = $4000 Year 1 investment = $5000 Year 3 investment = $7000…

Q: What is the future value of the initial $10,000 deposit after 5 years? We assume current interest…

A: Future value of the initial $10,000 deposit after 5 years can be calculated using future value…

Q: To buy a Treasury bill (T-bill) that matures to $10,000 in 6 months, you must pay $9720. What annual…

A: future value = $10000 Mature time = 6 months or 6/12 Principal = $9720 interest amount = future…

Q: 1. Suppose that a loan of $9,000 is given at an interest rate of 2% compounded each year. Assume…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Suppose that you are about to borrow $10,000 from a bank. Suppose you will be repaying using…

A: Bank charges interest rate when you borrow money and these are to be paid equal annual payment or…