What is the present value of $1000 to be received in 10 years if the interest rate is 12% compounded semi annually?
Expert-Verified Answer
Expert-Verified Answer
The present value of $15,000 to be received in 10 years with a market rate of 5% compounded annually is approximately $9,543.62.
In conclusion, the present value of $5,000 received in 9 years at a 10 percent interest rate is $2,704.63. Understanding the concept of present value is crucial in finance, as it allows us to make informed investment decisions and evaluate the value of future cash flows in today's dollars.
Expert-Verified Answer
The present value of $12,950 to be received 3 years from today if the discount rate is 5 percent is $11,230.35.
What is the present value (PV) of $50,000 received twenty years from now, assuming the interest rate is 6% per year? C) Calculate the PV with FV = $50,000, interest = 6%, and N = 20, which = $15,590.24.
Answer and Explanation:
Since the amount is received after 10 years, the amount must be discounted using the discount rate of 10% in the present value formula. The present value of the amount to be received is $613.91.
Answer and Explanation: Present Value(PV)= ? Now we will substitute the respective values. So the present value will be approximately $32,200 .
Answer and Explanation:
Opportunity cost (r) is 9%. Hence, the present value of $100 to be received 10 years from today is $42.241.
Present value is the value today of an amount of money in the future. If the appropriate interest rate is 10 percent, then the present value of $100 spent or earned one year from now is $100 divided by 1.10, which is about $91.
Step 1: Determine the quarterly rate by dividing the annual rate by the number of quarters. Step 2: Determine the number of periods by multiplying the number of years by the number of quarters. Step 3: Determine the future value of the annuity using the mathematical formula. The future value is $75,401.
What is the present value of $5000 to be received 10 years from now if the interest rate is 8 percent?
Expert-Verified Answer. The present value of $5,000 to be received 10 years from now, with an interest rate of 8 percent, is $2,112.05. In this case, the Future Value is $5,000, the Interest Rate is 8 percent (or 0.08), and the Time Period is 10 years. Therefore, the correct answer is c) $2,112.05.
The present value of $1,000 to be received in 4 years at an interest rate of 8% is $735.03.
Answer and Explanation: The present value (PV) is $863.84.
Expert-Verified Answer. The present value of $100 each year for 20 years at 10% per year is (B) $851.36. Therefore, the present value of all the payments is approximately (B) $851.36.
Question: What is the present value of $21,797 to be received in one year if the discount rate is 5.1 percent? $20.715.
The formula for calculating the present value is: Present Value = Future Value / (1 + Interest Rate) ^ Number of Years Plugging in the values: Present Value = $1,000 / (1 + 0.12) ^ 2 First, calculate the value inside the parentheses: 1 + 0.12 = 1.12 Now, raise this value to the power of 2: 1.12 ^ 2 = 1.2544 Finally, ...
The present value formula is PV = FV/(1 + i) n where PV = present value, FV = future value, i = decimalized interest rate, and n = number of periods. It answers questions like, How much would you pay today for $X at time y in the future, given an interest rate and a compounding period?
Summary: The present value of $1,000 to be received in 5 years is $548 if the discount rate is 12.78%.
If a $1,000 investment is held for five years in a savings account with 10% simple interest paid annually, the FV of the $1,000 equals $1,000 × [1 + (0.10 x 5)], or $1,500.
The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24. It is computed as follows: F u t u r e V a l u e = 1 , 000 ∗ ( 1 + i ) n.
What is the present value of $1000000 to be received in 20 years and discounted at 10% per year?
Answer and Explanation:
Applying the formula, the present value of 1,000,000 in 20 years, given 10% discount rate, is: 1 , 000 , 000 ( 1 + 10 % ) 20 = 148 , 643.628.
Correct Answer: Option C) $1,058.30.
Answer and Explanation:
The present value of $100 to be received in 3 years $75.13.
Answer and Explanation:
Option B ($83) is the correct answer.
The correct answer to the given question is option B) $100,000.
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