Find Present Value of the given investment
6. An investment earns 2% per year and is worth $10,000 after 5 years.
7. An investment earns 5% per year and is worth $20,000 after 2 years.
8. An investment earns 7% per year and is worth $1,000 after 6 months.
Present value is the value of an expected income for particular period of time. Usually it is less than the amount of future value. This method is used to calculate value of loans, mortgage, bonds, sinking fund etc.


Find Present Value of the given investment 6. An investment earns 2% per year and is...
Find the present value of the given investment. An investment earns 0.03% per week and is worth $15,000 after 15 weeks.
An investment account earns 6% compounded monthly. An initial investment of $12000 (present value) grows to $30000 (future value) in t years. Find t rounded to 2 decimal places.
2 4 .6 18 5) What is the present value of 5 annual payments of $10,000.00 and another 5 annual payments of $2,500 @ 5% 3 6) The present value of saving $2,000.00 a year, at-5%, for 5 years is greater than saving $1,500.00 a year, at 5%, for 10 years. s 7) if I want to have $2,000,000, in 45 years, I need to save $2,500 each year for 45 years, at 7%. 7 8) Which stream of future...
Calculate, to the nearest cent, the future value FV of an investment of $10,000 at the stated interest rate after the stated amount of time. HINT (See Quick Examples 1 and 2.] 7.5% per year, compounded daily (assume 365 days/year), after 12 years FV = $ Need Help? Read It Watch It Talk to a Tutor . +-/1 points WaneFM7 2.2.012. Calculate the present value PV of an investment that will be worth $1,000 at the stated interest rate after...
Find the present value of an annuity of $3000 per year at the end of each of 10 years after being deferred for 5 years, if money is worth 5% compounded annually. (Round your answer to the nearest cent.)
find the present value
Find the present value PV of the annuity account necessary to fund the withdrawal given. Hint [See Quick Example 3.] (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $800 per month for 20 years, if the account earns 2% per year and if there is to be $10,000 left in the annuity at the end of the 20 years PV = $
Find the maturity value of an investment of $25000 that earns 4% per year for 225 days. Please show your work...
Information on four investment proposals is given below: Investment required Present value of cash inflows $ (130,000) 185,600 Investment Proposal BCD $ (140,000) $ (150,000) $ (1,260,000) 193,800 228,600 1,681,100 $ 53,800 $ 78,600 $ 421,100 Net present value 55,600 Life of the project 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal (Round your answers to 2 decimal places.) Project Investment Profitability Proposal Index 2. Rank the proposals in...
1. Determine the discount rate assuming the present value of $940 at the end of 1-year is $865? 2. $9,800 is deposited for 12 years at 5% compounded annually, determine the FV? 3. If $2,800 is discounted back 4 years at an interest rate of 8% compounded semi-annually, what would be the present value? 4. Consider a newlywed who is planning a wedding anniversary gift of a trip to Canada for her husband at the end of 10 years. She...
Find the present worth in year 0 for the cash flows shown using an interest rate of 5% per year. *solve it in Excel, show formula P = ? i=5% 3 4 5 6 7 8 9 10 11 A=$10,000 $8000+$10,000 $12,000+$10,000