What is the present value of $876.89 if we discount it by 0.09 for one year (remember the equation c/(1+r)^n ) NOTE interest rate is in decimal already, no need to convert
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What is the present value of $876.89 if we discount it by 0.09 for one year (remember the equation c/(1+r)^n ) NOTE interest rate is in decimal already, no need to convert
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- What is the value of the continuously compounded nominal interest rate r if the present value of 104 to be recieved after one year is the same as the present value of 110 to be received after two years? Please solve by hand and show all the steps of answer in order me to understand it at best :)a. If the interest rate is 5.0% per year, approximately how long will it take for your money to quadruple in value? (Use the Rule of 72. Round your answer to 2 decimal places.) Number of years: b. If the inflation rate is 3.5% per year, what will be the change in the purchasing power of your money over this period? (Use the Rule of 72 to compute the number of years. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Purchasing power increases or decreases by %Assume that you must estimate what the future value will be two years from today using the future value of 1 table. (PV of $1, EV of $1. PVA of $1, and FVA of $1) Which interest rate column and number-of-periods row do you use when working with the following rates? (Round percentage answers to 2 decimal places.) Answer is complete but not entirely correct. Number of Periods 1. 12% annual rate, compounded annually 2.8% annual rate, compounded semiannually 3. 12% annual rate, compounded quarterly 4. 12% annual rate, compounded monthly Interest Rate 12.00 2.00 3.00 1.00 % % % % 2 80 24
- Calculate the simple interest rate. (Round your answer to one decimal place.) P = $9100, I = $440, t = 1 yearWhat is the Discounted Present Value (DPV) if you expect to receive $8,000 in year 1, $9,000 in year 2 and $7,000 in year 3, when the interest rate is 8% in each year? Round your answer to one (1) decimal, do not write the dollar sign. Use the minus sign where appropriate.Compute the interest rate if future value (FV) = $7,198, present value (FV) = $2,694, and number of years (t) = 9. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
- Given an interest rate of 4.8 percent per year, what is the value at date t = 10 of a perpetual stream of $3,200 payments that begins at date t = 20? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Calculate the simple interest rate. (Round your answer to one decimal place.)P = $2600, I = $78, t = 8 monthsWhat nominal (per annum) interest rate i, compounded quar- terly, would we need such that a deposit of $9,000 now would yield a future value of $12,500 in 5 years? Give your answer as a percentage rounded to two decimal places (e.g. 1.23%).
- If the present value of $400 paid one year from now is $320, what is the one-year interest rate? (Note: this number is also known as the discount rate.)Compute the present value if future value (FV) = $7,745, interest rate (r) = 8.1%, and number of years (t) = 11. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):Suppose the interest rate is 3.6% b. Having $650 in one year is equivalent to having what amount today? c. Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the money? Why or why not? **round to the nearest cent**