What is the equivalent present value of the following series of payments: $10,000 the first year, $11,000 the second year, and $12,000 the third year? Consider 4% interest, compounded annually.

Q: What is the future value of $875 deposited for one year earning an 8 percent interest rate annually?

A: Future value can be described as the future worth of a specific amount at a certain future date.It…

Q: A series of year end payment extending over ten years are as follows 5000 for the first year 10000…

A: N = 10 Payments: Year Payment 1 5000.00 2 10000.00 3 20000.00 4 20000.00 Interest rate…

Q: A sum of GH¢100 is to be paid at the end of each year for 20 years. The effective compound interest…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: An annual perpetuity of $10,000 has a present value of $250,000.  What is the annual interest rate?

A: Present value of an annual perpetuity = Annual cash flow/Interest rate Interest rate = Annual cash…

Q: What is the future value of $2,000 deposited for one year earning 6 percent interest rate annually?

A: Given details are : Present value of deposit = $2000 Time period = 1 year Interest rate = 6%  From…

Q: A series of equal semi-annual payments of $2200 for 3 years is equivalent to what present amount at…

A: Given, Interest rate = 12 % per annum. Semi-annual Interest rate =122 = 6 %. Time period = 3 × 2 = 6…

Q: What will be the present value, if $6,800 is discounted back 4 years at an interest rate of 4%…

A: Interest rate=4%Period=4yearsFuture value=$6800

Q: What is the present value of an ordinary annuity of $1,600 per year for 6 years discounted back to…

A: In the given question we require to compute the present value of ordinary annuity. Annuity payment =…

Q: What is the effective annual rate of interest if $1200.00 grows to $1500.00 in two years compounded…

A: Effective Annual Rate: It is the real rate of return paid on a loan or earned on an investment,…

Q: Suppose you were to receive $1,000 at the end of 10 years. If your opportunity rate is 10 percent,…

A: given, FV = $1000 N=10 R=10%

Q: What is the present value of an annuity that consists of 24 semiannual payments of $8000 at the…

A: Present value is the current value of future cash flow with respect to time value of money.

Q: What is the future value in 12 years of $1,000 payments received at the beginning of each year for…

A: As a first step, let's gather all the information that question has to offer.Annuity investment = A…

Q: What is the future value of $700 deposited for one year earning 4 percent interest rate annually?

A: In the given question we need to compute the future value of $700 deposited today for one year at 4%…

Q: What is the present value of $5,000 paid at the end of each of the next 89 years if the interest…

A:

Q: if money is worth 8% compounded quarterly, what is the present and future value of an ordinary…

A: The present and future value can be computed with the help of annuity function

Q: What is the future value of $800 deposited each year for six years, compounded annually at 10…

A: RATE  10% NPER (n)  6 PMT 800

Q: How much is the present sum is equivalent to a series of P1000 annual end-of year payments, if a…

A: Annual payment (P) = P 1000 Interest rate (r) = 6% Number of annual payments (n) = 10

Q: What is the present value of $10,000 to be received two years from today assuming an annual interest…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: What is the future value of 1,000 over five years if 8% interest is paid annually ?

A: Present value is the sum of money that must be invested in order to achieve a specific future goal.…

Q: What's the present value of $14,000 discounted back 5 years if the appropriate interest rate is…

A: An investment decision is taken on the basis of the returns expected to be generated by the…

Q: What will be the compound interest accrued on a sum of $3500 at the rate 8% in 2 years?

A: Given: Rate of interest (r)= 8% Time period = 2 years

Q: What is the present value of a perpetuity of P150,000 payable quarterly if money is 4%…

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

Q: What is the present value of an ordinary annuity if its value at the end of 10 years is Php 50 000?…

A: Annuity Amount PHP 50,000 Rate of Interest (12% /4) 3% Period (10 Years * 4) 40

Q: What is the future value of $5,000 deposited for four years compounded atan annual rate of 10…

A: Annual Compounding       Interest rate  10.00%   Period (NPER)  4   Present Value 5000…

Q: What is the present value of the following annuities? 70 a year for 3 -years discounted back to the…

A: Annuity referes to the payments made at regular interval. It could be ordinary annuity when payments…

Q: A series of equal quarterly payments of $5,000 for 10 years is equivalent to what future lump-sum…

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

Q: What amount of money is equivalent to receiving ₱5,000 two years from today, if  interest is…

A: We need to use present value formula to calculate the amount of money equivelent today(present…

Q: What is the future value of general annuity of P48,000 per annum, for 5 years, at 15% interest…

A: Annual payment (P) = P48,000 Number  of annual payments (n) = 5 Years Interest rate (r) = 15% Number…

Q: What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the…

A: The perpetuity is the annuity that happens for a perpetual period. In other words, it is the equal…

Q: A series of equal quarterly payments of $6,000 for IO years is equivalent to what present amount at…

A: Formula used to compute present equivalent worth: Formula to compute effective interest rate:

Q: You are paid £4,000 annually for 6 years, with the first payment due in one year and the last…

A: Annual payment (P) = £4,000  Number of annual payments (n) = 6 Interest rate (r) = 2%

Q: A series of equal quarterly payments of $6,000 for 10 years is equivalent to what present amount at…

A: Information Provided: Quarterly payments = $6000 Years = 10 Interest rate = 12%

Q: what present amount at an interest rate of 12% compounded annually?

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: What is the present value of an ordinary annuity of $400 each month for eight years, assuming an…

A: Present Value Present value is the present worth of any sum of a money to be received in the future…

Q: What is the future worth of a series of equal monthly payments of $2,000 if the series extends over…

A: Use the following formula to calculate the effective interest rate (EIR). Where i is the effective…

Q: How much is ₱1,200 worth at the end of 1 year if the interest rate of 5.5% is compounded quarterly?

A:

Q: How much invested now at an interest rate of 10% compounded annuallywould be just sufficient to…

A: Present value is the current worth of the amount that is expected to be received in some future…

Q: The annual amount of a series of payments to be made at the end of the next twelve years is P500.…

A: Answered:

Q: What is the present value of $10,000 to be received 10 years from now if the interest rateis 5…

A: Compound interest to interest charged on amount which is sum of principal and interest of previous…

Q: What is the future value of $400 deposited for one year earning an interest rate of 9 percent per…

A: The provided information are: Present value (PV) = 400 Rate of interest (i) = 9% Number of year (n)…

Q: tỏ bê paid off by a payment of R2000 now, and two equal payments two consecutive years from the…

A: The time worth of money (TVM) is the possibility that cash you have now is worth more than the…

Q: present value of a perpetuity with annual cash flows of $1,000 each year is $15,000. What is the…

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

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.