How much would you pay for an asset that costs you 10,000 for each of four years in a row (starting right now) and pays off with a benefit of 2,000 every year after that forever. Assume interest rate of 0.07%
Q: a. What single investment made today, earning 10 % annual interest, will be worth 10,000 TL at the…
A: Given information: Future worth is 10,000 Interest rate is 10% Number of years is 3
Q: 1- If you invested $10,000 in an investment account and you expect it to double in 4 years, what…
A: 1. Investment= $10000 time= 4 years
Q: You borrow $100,000 to buy a house; if the annual interest rate is 6% and the term of the loan is 20…
A: Present Value of annuity = P * {1-[1/(1+r)^n]/r} Where, r = rate of interest i.e. 6% n = no. of…
Q: If you'd like to have $5,000,000 at retirement in 45 years and you expect to earn 10% annually,…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: A property is bought for 10000$ and yields a 1000s yearly profit. If it is sold after 5 years, what…
A: Break even will occur when the NPV is nil.
Q: If you think you can sell an asset for $15,000 in eight (8) years and you think the appropriate…
A: Amount that would be willing to pay for the asset today = present value of future cash inflows
Q: Suppose you put $ 525 a month for retirement into an annuity earning 5.25% compounded monthly. If…
A: An investment decision may involve regular cashflows of equal amount during successive years in…
Q: Suppose you save $4,000 per year at the end of each year for 10 years and earn 8.5% interest per…
A: Since you have not mentioned the specific question we will just answer the first question in case…
Q: How much should Linda Bryan set aside now to buy equipment that costs $9,000 in one year? The…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: If you invest 5000 dollars today at a compound interest rate of 10 percent, compounded…
A: Future value can be defined as the worth of money at a future date, computed in accordance with the…
Q: YOU WIN $500,000 do you want to be paid out all at once or do you want to receive annual end of year…
A: Calculation of Present Value of Annuity Stream:The present value of annuity stream is…
Q: You to start to save for a major purchase. You can invest ₱320 every three months for 3 years and 9…
A: Interest Earned refers to amount cash inflow that a lender or investor receives in excess of…
Q: How much would you have at the end of five years if you invested P50,000 at 10.5% interest rate?
A: Future Value: It is the future worth of the present sum of the amount and is computed by…
Q: You bought a home for $150,000 and put down 10% and got a mortagage at an interest rate of 4.35% per…
A: We will make use of the PMT function in Microsoft Excel to determine the monthly payment on the…
Q: Give your answers to the nearest cent. A. Find the future value of $5,500 deposited for four years…
A:
Q: suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…
A: The computation of down payment as follows: Hence, the down payment is $15,000.
Q: ay you $99,000 in 15 years. If the appropriate discount rate is 6.7 percent compounded quarterly,…
A: The given problem can be solved using PV and EFFECT function in excel. PV function computes present…
Q: Suppose you put $ 450 a month for retirement into an annuity earning 4.25% compounded monthly. If…
A: Future value can be referred to as the value of an underlying asset or security at a future date.…
Q: a. What do you get at the end, if you save $100 for 8 years with 15% interest rate?
A: a) Annual saving (A) = $100 r = 15% n = 8 years
Q: how much will a single investment of $10,000 be worth in 10 years
A: Time value of money(TVM) means that the amount of money received in the present period will have…
Q: Suppose you bought a house for 45,000,000 by paying 10% down payment. Make Amortization table by…
A: Amortization table: It is a schedule that shows the repayment of loan amount along with the interest…
Q: How much must you save each year
A: The worth of today’s dollar at a future date is the future value of the dollar. For example, the…
Q: What is the present value of an investment that promises to pay you $ 1, 000 in five years if you…
A: Here, The present value is PV. The future value is FV. The maturity is n. The interest rate is r.
Q: Suppose you save $4,000 per year at the end of each year for 3 years and earn 5% interest per year.…
A: Annuity is no. of payments which is equal in size and made at equal interval of time. Person get…
Q: What is the maximum amount you should pay today for an investment that pays a single future cash…
A: Future cash flow (FV) = $25000 Interest rate = 2% Semi annual interest rate (r) = 2%/2 = 1% Period =…
Q: You’re buying your first house for $180,000, giving $35,000 as down payment. The amount you will…
A: The amount of interest payable over the term of the loan and the loan amount due is equal to the…
Q: You have been told that you need $15,000 today in order to have $50,000 you want when you retire 30…
A: To open the "RATE function" window - MS-Excel --> Formulas --> Financials --> RATE.
Q: What is the value of today of an investment that will pay $100 per year for 5 years. Assume first…
A: Present value of annuity is the present value of recurring cash flows with regular intervals at a…
Q: If you pay $500 for an investment that returns $600 in 1 year, whatis your annual rate of return?…
A: Future value = Present Value * (1+r)^n Where, r = rate of interest n = no. of years
Q: What would you pay for an investment that pays you $4300000 after twenty years? Assume that the…
A: Principal amount invested now will become certain amount after certain period of time at specific…
Q: If you are considering the purchase of a consol that pays $60 per year forever, and the rate of…
A: PERPETUITY : IT IS ANNUITY WHICH IS PAID FOREVER. PV =ar where, a=annual payment r= rate
Q: If a company will pay $75,000 for a truck that will increase deliveries to be made which will give…
A: The cost of cash = $75,000 Revenue per year = $10,000 Time period = 10 years Interest Rate = 4%
Q: Suppose you put $ 475 a month for retirement into an annuity earning 5.75% compounded monthly. If…
A: Ordinary annuity are the payments which are made at the end of the period.
Q: Suppose you would like to have P25,000 saved 6 years from now to pay towards your down payment on a…
A: Future value of ordinary annuity(payments at end of year) concept is used to calculated the annual…
Q: If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years? *
A: Present value method is used to evaluate the different level of investment projects. With the help…
Q: f you borrow 5000 USD at 5% simple interest annually for 8 years, how much will you have to repay at…
A: Interest means the extra amount which we received because of investment made and will be paid in…
Q: If you invest $10,000 at 8.125% interest compounded daily, how long will it take for you to…
A: Present value =$10,000 Future value = $15,000 Interest rate = 8.125% compounded daily So, daily…
Q: How long will it take (in years and months), for $200 to quadruple in value, if it earns interest at…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: Trying to buy a new house. (1) In the case of paying $200,000 in a lump sum plus $1,000 in…
A: To evaluate the given options, we shall first calculate the present value of both and accordingly…
Q: If you deposit $5,000 4 years from today, how much will you be able to withdraw 10 years from today…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: g What is the füfüre compounded at 10 percent? What would be the future value if it were an an-…
A: Answer g: Information Provided; Term = 7 years Rate = 10% Payment = $1000
Q: How much more could you have earned over a 10 year period if interest had compound annually?
A: Simple interst formula is I = P*R*T Where I is Interest,P is principle,R is rate of interest and T…
Q: What is the present value of an investment that will pay $1,000 in one year's time, and $1,000 every…
A: Calculation of Present value of perpetuity:Answer:The present value of the investment is $12,500
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- What is the value of an investment today, if it pays P250 interest forever and the appropriate interest rate is 5%?Suppose you are going to receive $5,000 per year for 8 years. The appropriate interest rate is 10 percent. What is the present value of the payments if they are in the form of an ordinary, a. anhuity? b. What is the present value if the payments are an annuity due?How much should you pay today for a 10 year annuity that will provide annual payments of $10,000? Assume an interest rate of 4%. PLEASE BREAK IT DOWN
- 2. You buy a perpetuity that starts its annual payment $100 in 5 years from now. The EAR is 5%. a. What is the present value of the perpetuity? b Now suppose that the annual payment grows at 3% per annum (all the other conditions are the same as above). What is the present value of this growing perpetuity?What is the present value of $3,000 paid each year forever, assuming a discount rate of 5% and the first payment occurs one year from now? Equivalently: What amount would you have to invest today at an interest rate of 5% to generate an annual payment of $3,000 forever?2 a) Suppose you receive $10,000 and have an opportunity to earn a real rate of return of 10% (assume known and constant forever). Using the definition of income proposed by John Hicks, what is your annual sustainable income? In other words, what amount can you spend every year forever? b) What is the present value of an annual payment of $10,000 forever, assuming a 5% real discount rate? $9,523.80 $200,000 Infinite $10,000
- What would you pay for an investment that pays you $5200000 after twenty years? Assume that the relevant interest rate for this type of investment is 6%.What would be the maximum price you should pay for a 10 year annuity that will provide payments of $800 a year? Assume the appropriate interest rate for this type of investment is 7%. Please break down1.Suppose you can save $200 per year at the end of each year for 15 years and earn 7.49% interest per year. However, you cannot start saving for five years. What is the present value of this annuity? 2.What are the annual payments for a 4-year $4,000 loan if the interest rate is 9% per year? Make up a loan amortization schedule.
- Suppose you have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6 years, at a 9% interest rate. What is the most you should pay for the annuity? USE FORMULAWhat is the present value of an investment that promises to pay you $ 1, 000 in five years if you can earn 6 percent interest compounded annually ? PV - Lump SumWhat is the present value of a $400 perpetuity if the interest rate is 8%? If interest rates doubled to 16%, what would its present value be? Round your answers to the nearest cent.