What is the present value on January 1, 2019, of 7 equal future annual receipts of $30,000 if the first receipt is received on January 1, 2020, and the interest rate is 10% compounded annually?
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A: Interest Rate = 6% Time Period = 10 Years
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A: The nominal rate can be computed as follows :
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A: equivalent annual rate = e0.10 - 1 = 10.51709% Present value of the cash flows = 5842.85
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A: Annual Received = $30,000 Interest Rate(r) = 10% Installments (n) =7
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A: Present Value represents the present worth of the investment. This can be computed by using Excel…
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A: Given data; payment amount = $800 interest rate = 10% number of years = 4
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A: Given: Present value = 500 Years = 15 Discount rate = 10%
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A: Present Value is the value of a future sum of money or a series of cash flows in the current time.…
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- Waterway Industries will receive $26500 today (January 1, 2020), and also on each January 1st for the next five years (2021 – 2025). What is the present value of the six $26500 receipts, assuming a 8% interest rate?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:1. The first payment is received on December 31, 2022, and interest is compounded annually.2. The first payment is received on December 31, 2021, and interest is compounded annually.3. The first payment is received on December 31, 2022, and interest is compounded quarterly.Present Value of an Ordinary Annuity What is the present value on January 1, 2019, of 7 equal future annual receipts of $30,000 if the first receipt is received on January 1, 2020, and the interest rate is 10% compounded annually?
- With an interest rate of 5 percent per year, what is the present value on December 31, 2020 of payments of $400 made on December 31 each year for the next 3 years starting in 2021? The present value on December 31, 2020 of payments of $400 on December 31 each year for the next 3 years starting in 2021 is $ d (answer to 1 decimal place).Calculate the present value as at 1 January 2019 of a series of payments of £100 payable on the first day of each month during 2020, 2021 and 2022, assuming an effective rate of interest of 8% per annum. Calculate this in form of Annuities like in Actuarial Science.On February 11, 2023 the future value of a sum of money will be $82,800. What would be the present value of this sum of money on July 6, 2020, if the interest rate is 2.91% compounded monthly. (1year = 365days) Round the value for PV to two decimal places. P/Y = PV = $ % C/Y = PMT = $ DBD = FV = $ days I/Y =
- What is the present value of an annuity of $6,000 to be received at the beginning of each of the next eight periods assuming an interest rate of 10%?YouplantoborrowR389000nowandrepayitin25equalannualinstalments (payments will be made at the end of each year). If the annual interest rate is 14%, how much will your annual payments be?Find the future value of an annuity of $1400 paid at the end of each year for 15 years, if interest is earned at a rate of 6%, compounded annually. (Round your answer to the nearest cent.) X
- If you have only P750 on July 10, 2023, what interest rate, compounded annually for 3 years, must you earn to have P1,000 on July 10, 2026?Assuming a 360-day year, when a $50,000, 90-day, 9% interest-bearing note payable matures, the total payment will beWhat is the present value on January 1, 2019, of $10,000 to be received on January 1, 2023, and discounted at 6% compounded quarterly? ____________________________ What is the future value on January 1, 2025, of $20,000 deposited on January 1, 2019, which accumulates interest at 10% compounded annually? ____________________________ What is the interest rate per period and the frequency of compounding per year in each of the following? If needed, round your interest rate answers to two decimal places. Interest RatePer Period Frequency of CompoundingPer Year a. 18% compounded semiannually _______% _______ times b. 16% compounded quarterly _______% _______ times c. 15% compounded monthly _______% _______ times
