hello. i need some help in this.
Calculate present value of lump sum amount | ||||||
Present value | Future value*(1/((1+r)^n) | |||||
Present value | 10000*(1/(1.12^6)) | |||||
Present value | 10000*0.506631 | |||||
Present value | $5,066.31 | |||||
Calculate future value of lump sum amount | ||||||
Future value | Present value*((1+r)^n) | |||||
Future value | 10000*(1.12^6) | |||||
Future value | 10000*1.973823 | |||||
Future value | $19,738.23 | |||||
Calculate present value of annuity | ||||||
Present value | Annuity amount*Present value of annuity factor (n=24,r=2%) | |||||
Present value | 10000*18.9139 | |||||
Present value | $189,139.26 | |||||
Calculate future value of annuity | ||||||
Future value | Annuity amount*Future value of annuity factor (n=24,r=2%) | |||||
Future value | 10000*30.4219 | |||||
Future value | $304,218.62 | |||||
hello. i need some help in this. Name: Calculation of Present Value of a Lump Sum...
7. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $1,000 at the end of each year An annuity that pays $1,000 at the beginning of each...
Solve for the Present Value of a Lump Sum with the Following Situation: Investor has been offered an investment opportunity that is expected to provide $1,300 cash inflow at the end of five years. Investor is able to make 5% compounded annually on other investments. (This 5% discount rate can be thought of as an opportunity cost of capitalthe return the investor is forgoing on an alternative investment of equal risk). How much can the investor pay today for this...
12. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the end of every six moĆths O An annuity that pays $1,000 at the...
(a) What are the relationships of the present value and future value calculation of ordinary annuity and annuity due? (b) Suppose you would like to buy a car using a loan that requires an annual payment of $1,000 for 20 years at the end of each year. If the annual interest rate is 3%, what are the present value of this car? What is the Excel function used for this calculation? What would the present value be if the loan...
The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. bevinning of each year An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the beginning of each year An annuity that pays...
Present Value of a Lump Sum What is the present value of a $10,000 prize you expect to receive in 9 years? You require an 8 percent discount rate Write your answer out to two decimal places. (Note: Use the present value of an lump sum table in the Exhibit 1-3.) (Round yo answer to the nearest dollar amount.) ount per payment
9. Present value of annuities and annuity payments Aa Aa The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. O An annuity that pays $500 at the beginning of every six months O An annuity that pays $500 at the...
7. Present value of annuities and annuity payments The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the end of each year...
please answer the following question Assignment #5 Using your Present Value for a Lump Sum, Present Value for an Annuity, Future Value of a Lump Sum and Future Value of an Annuity, create four separate problems that use each table. Therefore, you need one problem for each table but four problems in total.
Which of the following will increase the future value of a lump sum (for example, the FV of $500 to be received N years from today). (Check all of the answer choices that are correct. This is an all or nothing question. Thus, if a and b are both correct and you do not put both of these or you include one o the other choices, you will receive 0 points). An increase in N An increase in the number...