Calculate the PV of lump sum $123,990 that is expected to receive after 14 years, the discount rate is 8%.
Calculate the PV of lump sum $123,990 that is expected to receive after 14 years, the...
You are due to receive a lump-sum payment of $1,750 in three years and an additional lump-sum payment of $1,850 in five years. Assuming a discount rate of 3.0 percent interest, what would be the value of the payments today?
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
Please show all work You expect to receive a lump sum amount of $20,000 fifty years from now. But you want that money now. So what is the present value of that sum if the current discount rate is 7.5%? Assume annual compounding. 2. You have just purchased a $1,500 five year certificate of deposit (CD) from a savings bank which will pay 3.5% interest compounded monthly. What will that CD be worth at maturity? 3. Calculate the...
If you receive $300 at the end of each year for 10 years plus a lump sum of $2,000 at the end of year 10, what is the present value of these receipts? Assume an interest rate of 5%.
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...
assume that you have a lump sum $825 that you are investing for 3 years at a nominal rate of 7%. what is the expected future value?
14.( )Joe Brady just won a $450,000 lottery in Pennsylvania. Instead of receiving a lump sum, he found that he would receive $22,500 annually (end of year) for 20 years. Joe is 75 years old and wants his money now. He has been offered $140, 827 to sell his ticket. What rate of return is the buyer expecting to make if Joe accepts the offer? a. b. C. d. less than 1% 15% 18% 12%
What lump sum deposited today at 8% compounded quarterly for 15 years years will yield the same final amount as deposits of $5000 at the end of each 6-month period for 15 years at 10% compounded semiannually? The value of the lump sum is ?? $
P4A.8 (similar to) Question Help The following table. . lists the lump sum payout, the timing of that payout, and the discount rate associated with five different investments. Calculate the present value of each investment The present value, PV, of the future sum of Investment A is $ I (Round to the nearest cent.) 11% Investment Future Sum Discount Rate Payout at End of Year $5,000 7% $32,000 2% $11,000 $150,000 6% $40,000 25% (Click on the icon located on...
Rita Gonzales won the $62 million lottery. She is to receive $2.8 million a year for the next 20 years plus an additional lump sum payment of $6 million after 20 years. The discount rate is 14 percent. What is the current value of her winnings? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present...