Foundations Of Finance
10th Edition
ISBN: 9780134897264
Author: KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher: Pearson,
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 5SP
Summary Introduction
To determine: The
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
(Present
value)
What is the present value of the following future amounts?
a.
$900
to be received
10
years from now discounted back to the present at
11
percent.
b.
$300
to be received
6
years from now discounted back to the present at
8
percent.
c.
$1,150
to be received
11
years from now discounted back to the present at
5
percent.
d.
$1,100
to be received
4
years from now discounted back to the present at
19
percent.
a. What is the present value of
$900
to be received
10
years from now discounted back to the present at
11
percent?
$nothing
(Round to the nearest cent.)
What is the present value of $900 to be received 13 years from now discounted back to the present at 11 percent?
The present value of $900 to be received 13 years from now discounted back to the present at 11 percent is
Round to the nearest cent
a. What is the present value of 15 annual payments of $100, with
the first payment one year from now, if the discount rate is 0.05?
b. What is the present value of 15 annual payments of $100, with
the first payment right now, if the discount rate is 0.05?
c. What is the present value of 15 annual payments of $100, with
the first payment five years from now, if the discount rate is 0.05?
d. At what discount rate would the present value of 15 annual
payments of $100, with the first payment right now, be 0?
e. How many annual payments of $100, with the first payment
right now, would it take to be worth more than $1,000, if the
discount rate is 0.05?
f. What is the value of 15 annual payments which begin at $100
one year from now and increase at 2% per year thereafter, if the
discount rate is 0.05?
Chapter 5 Solutions
Foundations Of Finance
Ch. 5 - Prob. 1RQCh. 5 - The processes of discounting and compounding are...Ch. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 1SPCh. 5 - Prob. 2SPCh. 5 - Prob. 3SPCh. 5 - Prob. 4SPCh. 5 - Prob. 5SP
Ch. 5 - (Compound value) Stanford Simmons, who recently...Ch. 5 - (Future value) Sarah Wiggum would like to make a...Ch. 5 - Prob. 8SPCh. 5 - (Future value) Giancarlo Stanton hit 59 home runs...Ch. 5 - Prob. 10SPCh. 5 - Prob. 11SPCh. 5 - Prob. 12SPCh. 5 - Prob. 13SPCh. 5 - Prob. 14SPCh. 5 - Prob. 15SPCh. 5 - Prob. 16SPCh. 5 - Prob. 17SPCh. 5 - Prob. 18SPCh. 5 - Prob. 19SPCh. 5 - Prob. 20SPCh. 5 - Prob. 21SPCh. 5 - Prob. 22SPCh. 5 - Prob. 23SPCh. 5 - Prob. 24SPCh. 5 - (Solving for PMT of an annuity) To pay for your...Ch. 5 - Prob. 26SPCh. 5 - Prob. 27SPCh. 5 - (Loan amortization) On December 31, Beth Klemkosky...Ch. 5 - (Solving for r of an annuity) You lend a friend...Ch. 5 - Prob. 30SPCh. 5 - (Compound annuity) You plan on buying some...Ch. 5 - (Loan amortization) On December 31, Son-Nan Chen...Ch. 5 - (Loan amortization) To buy a new house you must...Ch. 5 - Prob. 34SPCh. 5 - Prob. 35SPCh. 5 - Prob. 36SPCh. 5 - Prob. 37SPCh. 5 - Prob. 38SPCh. 5 - (Compound interest uith nonannnal periods) a....Ch. 5 - (Compound interest with nonannual periods) After...Ch. 5 - Prob. 41SPCh. 5 - (Spreadsheet problem) To buy a new house you take...Ch. 5 - (Nonannual compounding using a calculator) Jesse...Ch. 5 - (Nonannual compounding using a calculator)...Ch. 5 - (Nonannual compounding using a calculator) Fords...Ch. 5 - Prob. 46SPCh. 5 - (Nonannual compounding using a calculator) Dennis...Ch. 5 - Prob. 48SPCh. 5 - (Calculating the effective annual rate) Youve just...Ch. 5 - Prob. 50SPCh. 5 - Prob. 51SPCh. 5 - (Present value) The Kumar Corporation is planning...Ch. 5 - (Perpetuities) What is the present value of the...Ch. 5 - (Complex present value) How much do you have to...Ch. 5 - (Complex present value) You would like to have...Ch. 5 - Prob. 56SPCh. 5 - Prob. 57SPCh. 5 - Prob. 58SPCh. 5 - Prob. 59SPCh. 5 - (Present value of a complex stream) Don Draper has...Ch. 5 - (Present value of a complex stream) Don Draper has...Ch. 5 - (Complex stream of cash flows) Roger Sterling has...Ch. 5 - (Future and present value using a calculator) In...Ch. 5 - Prob. 1MCCh. 5 - Prob. 2MCCh. 5 - Prob. 3MCCh. 5 - Prob. 4MCCh. 5 - Prob. 5MCCh. 5 - Prob. 6MCCh. 5 - Prob. 7MCCh. 5 - Prob. 8MCCh. 5 - Prob. 9MCCh. 5 - Prob. 10MCCh. 5 - Prob. 11MC
Knowledge Booster
Similar questions
- If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%arrow_forward2. The following are exercises in present values: a. $100 at the end of three years is worth how much today, assuming a discount rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent? b. What is the aggregate present value of $500 received at the end of each of the next three years, assuming a discount rate of (i) 4 percent? (ii) 25 percent? C. $100 is received at the end of one year, $500 at the end of two years, and $1,000 at the end of three years. What is the aggregate present value of these receipts, assuming a discount rate of (i) 4 percent? (ii) 25 percent? d. $1,000 is to be received at the end of one year, $500 at the end of two years, and $100 at the end of three years. What is the aggregate present value of these receipts assum- ing a discount rate of (i) 4 percent? (ii) 25 percent? e. Compare your solutions in Part (c) with those in Part (d) and explain the reason for the differences.arrow_forward1. Assume that $1,000 is to be received 30 years from today. Compare the present values obtained using 0.05 and ó.20 as rates of discount.arrow_forward
- If the present value of $500 expected to be received three years from today is $200, what is the discount rate?arrow_forwardA. Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years. Draw a timeline for this question and solve? Timeline is compulsory.arrow_forwardWhat is the present value of $500 to be received 10.5 years from today when the annual discount rate is 8%? What is the present value of $2,000 to be received 2 years from today when the annual discount rate is 10%?arrow_forward
- Use present value tables to compute the present value of $450,000 to be paid in 10 years, with an interest rate of 10 percent. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1) (Use appropriate factor(s) from the tables provided. Round "Present Value" to nearest whole dollar amount.) Table Function: Future Value: Present Value: i= %arrow_forwardIf $16800 is deposited in a savings account today, what amount will be available three years from today? The following future value interest factors are provided: Periods Future Value of 1 at 12% 1 2 3 5 1.120 1.254 1.405 1.574 1.762 O ($16800 x 1.120) + ($16800 x 1.254) + ($16800 x 1.405) O $16800+ 1.405 $16800 x 1.405 O $16800 × 1.120 x 3arrow_forwardWhat is the total future value ten years from now of $400 received in 1 year, $350 received in 2 years and $900 received in 8 years if the interest rate is 5% per year? O a $2,047.15 O b. $2,100.11 Oc $2,299.15 Od. $2,129.89 O e. $2.254.44arrow_forward
- If the five-year present value annuity factor is 3.60478 and the four-year present value annuity factor is 3.03735, what is the present value of the $1 received at the end of five years? Question 14 options: If the five-year present value annuity factor is 3.60478 and the four-year present value annuity factor is 3.03735, what is the present value of the $1 received at the end of five years? D) $1.2132 A) $0.63552 B) $1.76233 C) $0.56743arrow_forward1. If you receive $29 each quarter for 19 years and the discount rate is 0.05, what is the present value? (show the process and can use financial calculator)arrow_forwardWhat is the present value of RM9,070 to be received 5 years from today if the discount rate is 16 percent? Select one: a. RM4,165.790 b. RM4,126.590 c. RM4,327.689 d. RM4,318.345arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College