An investment wil pay you $25,400 in 20 years. The stated interest rate is 13% (APR)....

Question

Question

Answer 1

Answer #1

Rate = 13% / 2 = 6.5%

Nper = 20 * 2 = 40

PMT = 0

FV = 25,400

Present value can be calculated by using the following excel formula:
=PV(rate,nper,pmt.fv)
=PV(6.5%,40,0,-25400)
= $2,045.74

Present value = $2,045.74

Answer 2

Similar Homework Help Questions

An investment will pay you $29,900 in 11 years. The stated interest rate is 9% (APR)....

An investment will pay you $29,900 in 11 years. The stated interest rate is 9% (APR). If interest is compounded continuously, what is the present value? Enter your response below rounded to two decimal places Number If the nominal interest rate is 4% and the real interest rate is 1%, what is the inflation rate? Enter your answer as a percentage. Do not enter the percentage sign in your answer Enter your response below (rounded to 2 decimal places)
An m ent will pay you 121.200 in 15 years. The stated Werest rate is 125...

An m ent will pay you 121.200 in 15 years. The stated Werest rate is 125 APR rest is compounded continuously what is the present Enter your response below rounded to two decimal places Number Out & Beck Question MacBook Air
Find the APR, or stated rate, in each of the following cases

Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16.): Stated Rate (APR)Number of Times CompoundedEffective Rate (EAR)%Semiannually 11.4%Monthly12.3Weekly10.0Infinite13.7

Find the APR, or stated rate, in each of the following cases

Find the APR, or stated rate, in each of the following cases. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Use 365 days in a year.) Stated Rate (APR)Number of Times CompoundedEffective Rate (EAR)%Semiannually13.75%Monthly9.75Weekly11.25Daily9.25
Please show work! You are planning for your retirement in 20 years. At that time you...

Please show work! You are planning for your retirement in 20 years. At that time you want to have saved $19,500,000. How much do you need to save each quarter for the next 20 years if the interest rate on your investment will be 7% per year (APR)? Enter your response below (rounded to 2 decimal places). Number
Find the APR, or stated rate, in each of the following cases: Semiannually 11.1%

Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): Stated Rate (APR)Number of Times CompoundedEffective Rate (EAR)%Semiannually11.1%Monthly19.6Weekly10.5Infinite8.4

Find the APR, or stated rate, in each of the following cases (Do not round intermediate...

Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) % Semiannually 11.0 % Monthly 11.9 Weekly 9.6 Infinite 13.3
Find the APR, or stated rate, in each of the following cases (Do not round intermediate...

Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) % Semiannually 12.2 % Monthly 13.1 Weekly 10.8 Infinite 14.5
Find the APR, or stated rate, in each of the following cases (Do not round intermediate...

Find the APR, or stated rate, in each of the following cases (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.): Stated Rate (APR) % Number of Times Compounded Semiannually Monthly Weekly Infinite Effective Rate (EAR) 11.0 % 11.9 9.6 13.3

its all one big question. Find the equivalent interest rates to the given nominal interest rates....

its all one big question. Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of 7.5% 0.00 % Round to two decimal places b. Nominal interest rate compounded monthly that is equivalent to 8% compounded quarterly 0.00 % Round to two decimal places c. Nominal interest rate compounded monthly that is equivalent to 6.5% compounded annually 0.00 % Round to two decimal places Brian...