Question

What is the value today of receiving $4,250 at the end of three years, assuming an interest rate of 12% compounded semiannual

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer : $ 2,996

Present Value = $4,250 * PV at 6% for 6 Periods

compound Semiannually

Present Value = 4,250 *0.70496 = 2996.08= 2996 (Answer)

r= 12%/2 = 6%

n= 3*2 = 6

Add a comment
Know the answer?
Add Answer to:
What is the value today of receiving $4,250 at the end of three years, assuming an interest rate of 12% compounded semi...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • What is the value today of receiving $5,000 at the end of each year for the next 10 years, assuming an interest rate of...

    What is the value today of receiving $5,000 at the end of each year for the next 10 years, assuming an interest rate of 12% compounded annually? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $28,251. $15,529. $50,000. $87,744.

  • What is the value today of receiving $3,000 at the end of each year for the...

    What is the value today of receiving $3,000 at the end of each year for the next three years, assuming an interest rate of 3% compounded annually? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $8,251. $9,000. $9,273. $8,486.

  • Using the appropriate present value table and assuming a 12% annual interest rate, determine the present...

    Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2021, of a five-period annual annuity of $5,000 under each of the following situations: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. The first payment is received on December 31, 2022, and interest is compounded annually. table or calculator function- payment-...

  • Calculate the future value of the following annuities, assuming each annuity payment is made at the...

    Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Future Value of Annuity 1. Annuity Payment $ 3,000 6,000 5,000 Annual Rate 7 % 8 % 12 % Interest Period Compounded Invested Annually 6 years Semiannually 9 years Quarterly 5 years...

  • How much will $5,000 invested at the end of each year grow to in six years,...

    How much will $5,000 invested at the end of each year grow to in six years, assuming an interest rate of 7% compounded annually? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $26,813. $7,504. $23,833. $35,766.

  • How much will $5,000 invested at the end of each year grow to in six years,...

    How much will $5,000 invested at the end of each year grow to in six years, assuming an interest rate of 7% compounded annually? (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $26,813. $7,504. $23,833. $35,766.

  • Using the appropriate present value table and assuming a 12% annual interest rate, determine the present...

    Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2021, of a five-period annual annuity of $5,900 under each of the following situations: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) The first payment is received on December 31, 2022, and interest is compounded annually. The first payment is received on...

  • Marshall has received an inheritance and wants to invest a sum of money today that will...

    Marshall has received an inheritance and wants to invest a sum of money today that will yield $5,000 at the end of each of the next 10 years. Assuming he can earn an interest rate of 5% compounded annually, how much of his inheritance must he invest today? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

  • Coney Island Entertainment issues $1,500,000 of 6% bonds, due in 10 years, with interest payable semiannually...

    Coney Island Entertainment issues $1,500,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.     Calculate the issue price of a bond and complete the first three rows of an amortization schedule when: Required: 1. The market interest rate is 6% and the bonds issue at face amount. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Do not...

  • 23- Air Destinations issues bonds due in 12 years with a stated interest rate of 11%...

    23- Air Destinations issues bonds due in 12 years with a stated interest rate of 11% and a face value of $400,000. Interest payments are made semi-annually. The market rate for this type of bond is 12%. Using present value tables, calculate the issue price of the bonds. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Multiple Choice $238,948. $425,100. $400,000. $374,900.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT