How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the annual rate of interest is 5%? A $1,200 B $25,200 C $120,000 D $480,000

Q: What is the future value of $118,000 invested for 5 years at 11% compounded monthly? (a) State the…

A: The future value of a single payment is only referred to as simple future value. An annuity requires…

Q: How much money should be invested at rate 2% compounded semi-annually to produce a future value of…

A: Present value of an investment is the initial amount that is invested in financial asset.  It is…

Q: How much would be needed today to provide an annual amount of $50000 each year for 20 years, at 9%…

A: Using excel PV function

Q: 1.   At what rate must RM50,000 to grow to 406,855 in 15 years compounded annually? Select one: a.…

A: "Since you have posted multiple questions, we have solved the first question for you. To get it…

Q: If money is worth 8% compounded quarter ly, determine tne present value of the following: a. An…

A: Discounting is a technique which is used to compute the PV of future cashflows by using an…

Q: What will be the future worth of money after 1 year, if the sum of P25,000 is invested today at a…

A: Investment (P) = P 25,000 Monthly interest rate (r) = 1% Period in months (n) = 12

Q: 22. You plan to purchase a property which has an expected NOI of $200,000. You plan to borrow…

A: DCR stands for debt coverage ratio. This ratio is used to measure the ability of a project to use…

Q: A certain project which requires an investment of P 80,000 will produce cash savings after taxes of…

A: Capital budgeting is the process by which a corporation examines potential large projects or…

Q: sent value of a perpetuity with interest rate of 7.5% is $150,000. What is the annual cash flow amou

A: A perpetuity is a series of uniform cash flows over an indefinite period of time.

Q: Which will provide the largest yield on an annuity after 30 years with 6% annual interest,…

A: Given, N = 30 Years r = 6%

Q: should be invested now into an 8% per annum interest-bearing account, compounded ye

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: If $10,000 is borrowed today at 5% simple interest, how much is due at the end of 10 years? (a)…

A: Simple interest is a method used to calculate interest on the sum of money borrowed by the borrower.…

Q: Calculate the present value for the cost of RM 10,000 which will be spent for 20 years if the…

A: Present value = FV / (1+r)^n Where r = interest rate per period n = no of periods FV = Future value…

Q: What is the capitalized cost of $60,000 in year 0, $150,000 in year 2 and a uniform annual amount of…

A: year 0 = 60000 Year 2 = 150000 Yera 5 = 50000 per year forever.

Q: What is the amount that an investor wants to pay for a perpetuity that will provide $20,000 per year…

A: Perpetuity is referred as the security which pays a never-ending stream of cash flows. It is the…

Q: at must be the total present value of the following ? Amount To be received after a) P 20,000 1…

A: Considering a certain return rate, the current value (PV) is the current value of the future cash…

Q: What is the present value of an annual annuity payment of Php7,000 made for 12 years with a required…

A: Present value of annuity due is computing the value at the end of the number of periods given using…

Q: What is the present value if you can earn 8% interest compounded annually?

A: NOTES: PV : Present Value FV : Future Value r : rate n : number of years.

Q: Compute the present value of a perpetual investment that would pay P25,000 every year if the…

A: To calculate the present value we will use the present value of perpetuity formula as follows:…

Q: B. Which of the following is worth the most today and why? a. $150 per year forever starting today -…

A: In order to determine the worth the most today, we have to find out the presennt value of all the…

Q: (a)Calculate the present value of an annuityof £1000 paid at the endof each year for 15 yearswith an…

A: Calculation of PV of Annuity, PV of Annuity Due and PV of Annuity Compounded Continuously: Excel…

Q: What’s the present value of a perpetuity that pays Php250 per year if the appropriate interest rate…

A: In finance, the time value of money concept states that the money available today is considered…

Q: 5. Which of the following statements is true about annuity? A. It is a series of payments of equal…

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

Q: f you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual cash…

A: Present value (PV) = $41000 Interest rate (r) = 5.1% Number of annual payments (n) = 15

Q: How much must be invested today at 10 %, compounded continuously, to be worth $165,000 in 5 years?…

A: Continuous compounding seems to be the mathematical limit of compound interest if it has been…

Q: 2. What's the present value of $25,000 received after 5 years if the appropriate interest rate is…

A: using the PV function

Q: What is the present value annuity due of RM4,500 with a 6 percent discount rate for 5 years? Select…

A: Annuity means finite no. of payments which are same in size and made in equal intervals. Person gets…

Q: Find the present value of an annuity P10,000 payable at the en quarter for 5 years if the rate of…

A: Present value of annuity can be found from the present value factor and annuity payment.

Q: A P700,000 plot of land can be purchased for P200,000 down and P60,000 per year for 12 years. What…

A: A loan with a fixed annual stated rate is the net amount of borrowings that a borrower makes who is…

Q: An annual growing perpetuity has a present value of $363,636.36  What is the growth rate (g) of this…

A: The time value of money is considered for determining the cash flows compounded and discounted…

Q: g) Find the present value of Ugx 120,000 payable in 5 years' time, assuming that an investment rate…

A: Using the PV function

Q: 6,000,000 apartment complex loan is to be paid off in 10 years by making 10 equal annual payments.…

A: We need to use present value of ordinary annuity formula to calculate yearly payment PMT…

Q: How much would have to be deposited today in an investment found paying j12 = 10.4% %3D to have $200…

A: Amount after 3 years = Deposit * [ 1 + Monthly rate ]Number of months

Q: 4. How much will you need to invest today to receive $50,000 in 10 years, assuming an investment…

A: Given Information: Future value is $50,000 Rate is 3% compounded monthly Number of years 10

Q: the payments occurred 5. Caiculating Annuity Cash Flows. If you put up $20,000 today in exchange for…

A: Annuity is the no. of payments which are equal in size and made at equal interval of time. Person…

Q: Find the present worth of perpetuity of Php10,000 semi annually with an interest rate of 10%…

A: Semiannual payment (S) = Php 10000, first payment after 5 years Interest rate = 10% quarterly…

Q: An investment is providing a scholarship worth $4720 every year indefinitely. What is money invested…

A: Perpetuity: Perpetuity is the series of fixed payments which is incurred or received for the…

Q: What is the future value of $117,000 invested for 5 years at 14% compounded monthly?

A: Componded Monthly: When a investment is componded monthly then the interesr will be calculated on…

Q: r a $10,000 investment that w

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: $500,000 lent for 8 years at simple i = 11% per year. What is repayment after 8years? i) For simple…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: g What is the füfüre compounded at 10 percent? What would be the future value if it were an an-…

A: Answer g: Information Provided; Term = 7 years Rate = 10% Payment = $1000

Q: What is the present value of P300,000 due at the end of 2 years, if the money is worth 8% compounded…

A: Thhe formula to calculate present value is: Present value = Future value / (1 + Rate)^Time

Q: What is the amount that an investor wants to pay for a perpetuity that will provide $20,000 per year…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: 23. Find the future value of an ordinary annuity for P500,000 investment at 5% quarterly for 10…

A: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question in case…

Q: You have been told that you need $25,600 today in order to have $100,000 when you retire 35 years…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: What will be the future worth of money after 1 year, if the sum of P25,000 is invested today at a…

A: Future value of sum can be calculated with the help of future value function.

Q: At what simple interest rate per annum will Php25,000 accumulate to Php33,000 in 5 years? Round off…

A: Interest means the extra amount which we received because of investment made and will be paid in…

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.