What is the present value on January 1, 2019, of $50,000 due on January 1, 2023, and discounted at 16% compounded quarterly?
Correct answer---------26,695.41 or 26,695 or $26,700.......Depending upon roundoff requirements.
Working
Amount to be received (A) | PV factor (B) | Present value (A x B) |
$ 50,000.00 | 0.534 | $ 26,700.00 |
Alternate solution
Amount to be received (A) | PV factor (B) | Present value (A x B) |
$ 50,000.00 | 0.5339 | $ 26,695.00 |
PV factor is @4%. .
4% is 1/4th of 16%
What is the present value on January 1, 2019, of $50,000 due on January 1, 2023,...
What is the present value on January 1, 2019, of $40,000 due on January 1, 2023, and discounted at 11% compounded semiannually?
I cannot figure out why these are wrong. Would appreciate help. 1. What is the present value on January 1, 2019, of $30,000 due on January 1, 2023, and discounted at 10% compounded annually? $ 20,490.40 X 2. What is the present value on January 1, 2019, of $40,000 due on January 1, 2023, and discounted at 11% compounded semiannually? $ 26,063.59 X 3. What is the present value on January 1, 2019, of $50,000 due on January 1, 2023,...
On January -M-2 M.3 interest of 12% compounded semiannually? Present Value Computations Using the present value tables, solve the following. Required: 1. What is the present value on January 1, 2016, of $30,000 due on January 1, 2020, and discounted at 10% compounded annually 2. What is the present value on January 1, 2016, of $40,000 due on January 1, 2020, and discounted at 11% compounded semiannually? 3. What is the present value on January 1, 2016, of $50,000 due...
A debt of $6284.46 is due December 1, 2023. What is the value of the obligation on December 1, 2017, if money is worth 8% compounded quarterly? The value of the obligation is $] (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
2.It is now January 1, 2019, and you will need $1,000 on January 1, 2023, in 4 years. Suppose you can deposit only $200 each January 1 from 2020 through 2023 (4 years). What interest rate, with annual compounding, must you earn to end up with $1,000 on January 1, 2023? 3. It is now January 1, 2019, and you will need $1,000 on January 1, 2023, in 4 years. Your father offers to give you $400 on January 1,...
What is the present value of $30,000 due 7 years from now, discounted at 8%? (b) What is the present value of $50,000 due 5 years from now, discounted at 15%?
What is the future value of $7,890 at the end of 5 periods at 8% compounded interest? What is the present value of $7,890 due 9 periods hence, discounted at 6%? What is the future value of 16 periodic payments of $7,890 each made at the end of each period and compounded at 10%? What is the present value of $7,890 to be received at the end of each of 19 periods, discounted at 5% compound interest?
Find the present value of $200 due in the future under each of these conditions: 16% nominal rate, semiannual compounding, discounted back 5 years. Round your answer to the nearest cent. $ 16% nominal rate, quarterly compounding, discounted back 5 years. Round your answer to the nearest cent. $ 16% nominal rate, monthly compounding, discounted back 1 year. Round your answer to the nearest cent. $
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 $
Present Value for Various Compounding Periods Find the present value of $400 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 $________