What's the present value of $100 to be received in 3 years if the interest rate is 4% annual compounding?
What's the present value of $100 to be received in 3 years if the interest rate is 4%, annual compounding? N = 3, I/YR = 4, PMT = 0, FV = 100, and then solve for PV = $88.90.
The future value of the investment is 112.49.
Answer and Explanation:
The present value of $100 to be received in 3 years $75.13.
In this case, we want to find the present value of $100 that we will receive at the end of three years, with an 8% annual discount rate. The result is approximately $79.38. Hence, the present value of $100 received at the end of three years, assuming an annual 8% discount rate, is about $79.38.
What's the future value of $100 after 3 years if the appropriate interest rate is 8%compounded annually? Compounded monthly? ($125.97, $127.02)
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?
Answer and Explanation:
Option B ($83) is the correct answer.
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.
Answer and Explanation:
Opportunity cost (r) is 9%. Hence, the present value of $100 to be received 10 years from today is $42.241.
NPV can be calculated with the formula NPV = ⨊(P/ (1+i)t ) – C, where P = Net Period Cash Flow, i = Discount Rate (or rate of return), t = Number of time periods, and C = Initial Investment.
What is the present value of $100 expected 3 years from today at a discount rate of 10 percent?
The present value of $100 due to be received after 3 years under the discount rate of 10% is $75.13. The present value of $100 due to be received after 3 years under a discount rate of 0% is $100. Where, PV = Present value.
Answer and Explanation: The calculated present value of $100 to be paid in 2 years is $82.64.
Present value of perpetuity:
When a stream of income is expected to be earned indefinitely, the present value of such income is calculated using the present value perpetuity factor. So, a $100 at the end of each year forever is worth $1,000 in today's terms.
Doing the calculation gives a present value of approximately $887.45, which when rounded to the nearest whole number, will be $887. Therefore, the correct answer from the options provided is not listed, the correct answer should be $887.
FV3Q = $100(1.025)12 = $134.49.
$453.51. The future cash flow is $500, the interest rate is 5%,... See full answer below.
We can find the present value of a deferred annuity in a number of ways. For instance, just as we did with uneven cash flows, we can discount each individual cash flow back to time 0 separately using the formula PV = FV ÷ (1 + i) n.
Answer and Explanation:
In this question, the initial investment is 100, quarterly return is 2.5%, and in 3 years there will be 3 * 4 = 12 quarters. Applying the formula, the future value is: 100 ∗ ( 1 + 2.5 % ) 12 = 134.49.
Answer : 1) PV = $250(P/F,15%,2) = $250(0.7561) = 189… Transcribed image text: Chapter 4, Application #1 Simple Present Value What is the present value of $250 to be paid in two years if the interest rate is 15%?
a. Present value of perpetuity=Annual cash flows/interest rate At 7%: Present value of perpetuity=100/0.07 =$1428.57(Approx) At 1…
What is $100 a year for 5 years compounded annually at 10 percent?
The $100 investment becomes $161.05 after 5 years at 10% compound interest.
Net Present Value (NPV)
Use an Interest Rate of 10% to work out the NPV. Money In: $570 next year: PV = $570 / (1+0.15)1 = $570 / 1.15. PV = $495.65 (to nearest cent).
What would be the value of $100 after 10 years if you earn 11 percent interest per year? Amount = 100 + 110 = $210.
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.
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