What 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.

Q: What is the value today of $4,300 per year, at a discount rate of 10 percent, if the first payment…

A: First payment is received 6 years from today and last 20 years from today. Therefore, total payments…

Q: a. If the one-year discount factor is 0.9200, what is the one-year interest rate? (Do not round…

A: Given:

Q: The present value of K due in 4 years is 678.80. If the force of discount (same as force of interest…

A: Value of money declines with the passage of time. Means, purchasing power of money declines.…

Q: Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the…

A: a. Having $200 today is equivalent to having 650 × 1.036 = $673.4 in one year. future value =…

Q: What’s the equivalent interest rate to the terms 3/20, n/60? In other words, what is the effective…

A: Time Value of Money:  The term 3/20 means if the customer makes payment within 20 days he will enjoy…

Q: What are the actual total savings for a borrower if the note rate is 6.625%, 30 year, 2/1 buy-down,…

A: Here, Sales Price is $140,000 Down Payment us $20,000 Interest Rate is 6.625% Time Period is 30…

Q: What is the difference in present value between a perpetuity that pays $500 per year and an ordinary…

A: Annual payment (A) = $500 n = 23 years for ordinary annuity r = 7%

Q: What is the present value of $9,500 to be received in 8 years if 7% is the proper discount rate?

A: Computation of present value: Hence, the present value is $5,529.09.

Q: What is the value of K on the left-hand cash-flow diagram that is equivalent to the right-hand…

A: The value received by an individual today is of more worth than that of receiving the exact amount…

Q: What is the present value of $4,000 to be received after 5 years, discounted at 5%?

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: a. If the one-year discount factor is 0.9217, what is the one-year interest rate? (Do not round…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: What is the present discounted value of $400 to be received one year from now plus $500 to be…

A: Present value  = amount to be received in future/(1+r)^n where r is the discount rate (or 4%) and n…

Q: How much money would you have at the end of 15 years if you initially invested $7,500 at a nominal…

A: Concept. A = P (1 + r)n  Where A = amount including compound interest. P = principal amount R = rate…

Q: How much money would you have to deposit today in order to have $5,000 in three years if the…

A: Present Value = Future Value / ( 1 + discount rate )years

Q: What is the present value (PV) today of a stable perpetuity that pays $11,000 every 3 years,…

A: The regular amount that is received or paid after a specific time period rather than immediately…

Q: Calculating Perpetuity Values. In the previous problem, suppose Curly's told you the policy costs…

A: The cash flows that are started immediately after the investment and go on for an infinite time…

Q: The present value of $6,000 you will receive 3 years from today is $5,333.98, assuming a 4% interest…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: What is the present value of RM4,500 to be received 10 years from today if the discount rate is 6…

A: Using PV function in excel

Q: What is the present value of $500 to be received 10.5 years from today when the annual discount rate…

A: Note : 1. As per the guidelines only first question will be answered. Kindly post the remaining…

Q: Find the following values Compounding/discounting occurs at the end of each year. a. An initial $200…

A: Note: As per our guidelines, we can only solve three subparts at once. We will answer the first…

Q: What's the present value of $4,000 discounted back 5 years if the appropriate interest rate is 4.5%,…

A: Discounting is a technique through which present value of the future amount is calculated. It is…

Q: Suppose you are going to receive $17,500 per year for five years. The appropriate interest rate is…

A:

Q: ind the following values using the equations and then a financial calculator.…

A: I am providing answers by using equations:

Q: Using the appropriate interest table, answer each of the following questions. (Each case is…

A: a. Future Value of $7,000 = $7000*Future value factor (8%, 5 years)…

Q: 1. If you receive $29 each quarter for 19 years and the discount rate is 0.05, what is the present…

A: In this Question we are required to compute the Present Value of Cash flows received every quarter…

Q: (Computation of Future Values and Present Values) Using the appropriate interest table, answer each…

A: a. Future Value of $7,000 = $7000*Future value factor (8%, 5 years)…

Q: You borrow $1,000 from a bank at 6% annual interest and promise to pay it back after a year. As you…

A: the real interest rate equals the nominal interest rate minus the expected inflation rate.…

Q: What is the present value of $11,000 to be received in two years if the interest rate is 5% p.a.?…

A: given future value = 11000 Years = 2  rate = 5%

Q: Find the following valuesusing the equations and then a financial calculator.…

A: The concept that helps to evaluate the future or present value of the cash flow is term as the time…

Q: Determine the present equivalent value of the cash-fow diagram shown below when the annual interest…

A: Present worth is related to the time value of the money. It shows that the worth of the money in…

Q: You would like to purchase a Treasury bill that has a $16,500 face value and is 62 days from…

A: Face value (F) = $16500 Price (P) = $16375 n = 62 days

Q: last payment is received 23 years from now? (Do not round intermediate calculations and round your…

A: Present  Value is the todays value of  the cash flows to be received in future . Present value…

Q: What is the present worth of a future payment of $19,000 in year 7 if the interest rate is 10% per…

A: The present value of a cash flow is the current worth of a cash flow at a certain arte of interest…

Q: Find the following values using the equations and then a financial calculator.…

A: Hi there. Thank you for the question. Question has multiple sub parts. As per company guidelines…

Q: Determine the discount rate assuming the PV of $1080 at the end of 1-year is $980? $9,800 is…

A: Future Value = Present Value * (1+r)^n Where. r = rate of interest n = no. of years

Q: What is the present value of a $360 payment in one year when the discount rate is 9 percent? (Round…

A: Payment in 1 year (P1) = $360 n = 1 year r = 9%

Q: What's the present value of $1,515 discounted back 5 years if the appropriate interest rate is 6.6%

A: Present value is the current value of future sum of money. It is the value of future money…

Q: At a discount rate of   6.00​%, find the present value of a perpetual payment of ​$   1,000 per…

A: Perpetual payment = $1000 Discount rate = 0.06   Discount rate = 0.03     Present value of the…

Q: Consider a perpetuity with a coupon of 100. Imagine that the perpetuity is purchased at time t when…

A: Given that;Rate of interest is 5%Income tax rate is 40%

Q: What is the present value of a $800 perpetuity if the interest rate is 8%? If interest rates doubled…

A: Perpetuity means that the steams of cash flow will be everlasting (forever continues).  The formula…

Q: What is the value today of $5,100 per year, at a discount rate of 7.9 percent, if the first payment…

A: Given: Note: First payment in 6years, that means at the end of year 5.

Q: What's the present value of $18,500 discounted back 5 years if the appropriate interest rate is 9%,…

A: PV = FV / (1 + r / n)nt Where, PV = Present value FV = Future value r = Rate of interest…

Q: Assume that you are preparing an amortization table for a three-year note with a stated and yield…

A: Amortization table is the table which shows all the amortization and the interest expenses and as…

Q: 4. If you receive $116 each month for 28 years and the discount rate is 0.08, what is the present…

A: This Question require to calculate the Present Value of Cash flows received every month for 28…

Q: 2. If you receive $99 each quarter for 17 years and the discount rate is 0.05, what is the future…

A: In this Question we require to calculate the Future Value of Cash flows that we will receive every…

Q: What is the present value of a $700 perpetuity if the interest rate is 8%? If interest rates doubled…

A: The below expression can be used to calculate present value of a perpetuity:

Q: What would you be ready to spend now for a P1,250 annual return over the following ten years,…

A: The term "discount charge" refers to the interest rate levied by the Treasury Department on…

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.