Present Value (PV) = Future Value / (1+r)n
Where r = rate of interest and n = number of years
PV = 5000 / (1+.08)3
PV = $3969.16
(What is d = 4%? If it is interest rate then put the 4% in place of r and calculate. )
Find the present value of $5,000 in 3 years if i = 8%. Also, if d...
1. The present value of $5,000 per year for three years at 12% compounded annually is $12,009. True or false? 2. At an annual interest rate of 8% compounded annually, $5,300 will accumulate to a total of $7,210.65 in 5 years True or false? 3. Matt is setting up a retirement fund, and he plans on depositing $5,600 per year in an investment that will pay 8% annual interest. How long will it take him to reach her retirement goal...
A)What is the present value of $26,400 to be received in 20 years; i = 6%. (Round answer to 0 decimal places, e.g. 5,275.) Present value : ........... B)What is the present value of a 15-year annuity of $2,600 per year; i = 5%. (Round answer to 0 decimal places, e.g. 5,275.) PRESENT VALUE : ................... C)What is the present value of a 5-year annuity of $3,500 with the first payment to be received 3 years from now; i =...
8) Find the present value of $15,000 over a term of 4 years at an annual interest rate of 6% if interest is compounded: a. Annually b. Quarterly A) a. $18,937.15 B) a. $18,937.15 a. $11,881.40 D) a. $11,881.40 b. $19,034.78 b. $19,068.74 b. $11,799.42 b. $11,820.47
You are calculating the present value of $5,000 that you will receive at the end of every year for the next ten years. Which table will you use to obtain the present value factor to calculate the total present value of those $5,000 payments you will be receiving? A. Future Value of Ordinary Annuity of $1 B. Present Value of Ordinary Annuity of $1 C. Present Value of $1 table D. Future Value of $1 table
22. Calculate the present value of $5,000 received five years from today if your investments pay a. 6 percent compounded annually b. 8 percent compounded annually c. 10 percent compounded annually d. 10 percent compounded semiannually e. 10 percent compounded quarterly What do your answers to these questions tell you about the relation between present values and interest rates and between present values and the number of compounding periods per year? (LG 2-9) 23. Calculate the future value in five years of $5,000 received today if your...
(Present-value comparison) You are offered $1,400 today, $5,000 in 12 years, or $29,000 in 20 years. Assuming that you can earn 13 percent on your money, which offer should you choose? a. What is the present value of $29,000 in 20 years discounted at 13 percent interest rate?
If the interest rate is 6 percent, then the present value of $5,000 received ten years from today is $2,583.34. a. True b. False
we have to find the Present Value for operating cost over the next
8 years. We value $ at 10% per year, so it appreciates at 10% per
year.
You put the poetry book down and think to yourself "ever since I inherited $1.3M, I can do things like read poems." You don't know what the poem means but whatever. You decide to use all your money to make more money. You value money at 10% per year unless stated...
Find the present value of $27 at 6 months, $58 at 2 years and $42 at 5 years if d(4)-8%.
If you are offered $5,000 in 13 years and you can earn 12 percent on your money, what is the present value of $5,000?