What is the present value of $500 invested each year for 10 years at a rate of 5%?
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=500[1-(1.05)^-10]/0.05
=500*7.72173493
=$3860.87(Approx).
What is the present value of $500 invested each year for 10 years at a rate...
10. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security of $10,000 will be worth $14,693 five years in the future, assuming that no additional deposits or withdrawals are made, what is the Implied interest rate the investor will earn on the security? O 4.80% O 6.00% O 6.40% O...
Find the present value of $10,000 invested for 10 years at 6% per year compounded semi-annually? a. $3,118.04 b. $5583.95 c. $5536.76 d. $6433.96
Suppose that you have invested in a perpetuity that pays $500 per year. Now, you forecast that the interest rate for the first 50 years to be 5%, but the interest rate will rise to 10% after the year 50. What’s the present value of this perpetuity with this information? Give me the specific explanation plz
Present Value of Uneven Cash Flow 10. You expect to receive $300, $400, $500, $300, $400 and $500 at the end of each year over the next 6 years. If an annual interest rate is 4 percent, what is the present value of this uneven cash flow stream? a. $2,083 11. You expect to receive $300, $400, $500, $300, $400 and $500 at the end of each year over the next 6 years. If an annual interest rate is 2...
What is the future value of $2,000 invested at the end of each year for 5 years? Use 10%.
Fundamentals of Financial Mathematics question:
QUESTION 5 At a certain interest rate the present value of the following two payment streams are equal: (i) 200 at the end of 5 years plus 500 at the end of 10 years 400.94 at the end of 5 years At the same interest rate, 100 invested now plus 120 invested at the end of 5 years will accumulate to X at the end of 10 years Calculate X. Round your answer to the...
Find the present value of a ten-year annuity which pays $500 at the beginning of each quarter for the first 4 years, and then $400 at the beginning of each quarter for the remain years. The annual effective interest rate is 7%. Round your answer to two decimal places
Please answer the following questions.
1. a) Calculate the present value of $500 with a discount rate of 7% for a period of 10 years. b) Calculate the future value of $1,000 with an interest rate of 5% for a period of 20 years. c) What is the annual interest rate if the present value is S100, future value is $200, and the time period is s years? d) What is the total present value of the following cash flows...
Present Value for Various Compounding Periods Find the present value of $500 due in the future under each of the following conditions. Do not round intermediate calculations. Round your answers to the nearest cent. 4% nominal rate, semiannual compounding, discounted back 5 years $ 4% nominal rate, quarterly compounding, discounted back 5 years $ 4% nominal rate, monthly compounding, discounted back 1 year $
Calculate the value of $500 saved each year for 12 years at 7%. Is this a present value or future value problem? Is it an annuity or single amount?