What is the value of an investment of $4,000 every year for 30 years at 7%...
What is the value of an investment of $4,000 every year for 30 years at 7% interest if the first contribution starts one year from today? Find the value at the end of the period.
Homework Answers
Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=$4000[1-(1.07)^-30]/0.07
=$4000*12.40904118
=$49636.16(Approx).
Future value of annuity=Annuity[(1+rate)^time period-1]/rate
=$4000[(1.07)^30-1]/0.07
=$4000*94.46078632
=$377,843.15(Approx).
Add Answer to:
What is the value of an investment of $4,000 every year for 30
years at 7%...
What is the present value of the following stream of cash flows: 4,000 in one year,...
What is the present value of the following stream of cash flows: 4,000 in one year, 8,000 in two years and 12,000 in three years if the discount rate is 10%? 19,264 21,455 23,565 25,439 QUESTION 8 What is the present value of a 5 period annuity of $3,000 if the interest rate is 12% and the first payment is in one period? 9,112 10,814 12,112 13,200 QUESTION 9 What is the value of a perpetuity that starts in one...
An investment promises to pay $30 each year for the next four years. In four years,...
An investment promises to pay $30 each year for the next four years. In four years, it will also pay $1000. Your required return on this investment is 7%. What is the value of the investment today? What is the value of the investment in one year? What is the value of the investment in two years? What is the value of the investment in ten years?
8) An investment will pay you $21,000 per year for the first 7 years, $23,000 per...
8) An investment will pay you $21,000 per year for the first 7 years, $23,000 per year for the next 8 years, $24,000 per year for the next 10 years and 25,000 per year for the following 5 years. What will this investment be worth in 30 years from today if interest rates are l 1%?
BIOWEE® TITTEEB Nex ent/d/160AWUQsqylexlusOJV4AG6MjhDAK9jN1RJLUWRhXSc/edit 3. An investment offers $5,500 per year for 15 years, with the...
BIOWEE® TITTEEB Nex ent/d/160AWUQsqylexlusOJV4AG6MjhDAK9jN1RJLUWRhXSc/edit 3. An investment offers $5,500 per year for 15 years, with the first payment occurring one year from today. If the required return is 6%, what is the present value of the investment? Show your work. 4. If you deposit $4,000 at the end of each year for each of the next 20 years into your account which pays 9.7% interest, how muc (4) If you deposit $4,000 at the end of each year for each...
169. What is the future value at the end of year 13 of an investment that...
169. What is the future value at the end of year 13 of an investment that starts at $6,000 and grows by 7% per year for 13 years ($6,000 is invested at the end of year 1). The interest rate is 10% annual compounded annually.
7. You plan to save $10,000 at the end of every year for 30 years and...
7. You plan to save $10,000 at the end of every year for 30 years and then retire. Given a 10% rate of interest, what will be the FV of your retirement account?
What is the present value of an investment that pays $100 every other year forever when...
What is the present value of an investment that pays $100 every other year forever when the first cash flow occurs in one year? What is the value if the first cash flow occurs in two years? The opportunity cost of capital is 16% per year.
Chris Eshden TIME VALUE oF MONEY CLASS PROBEMS If an individal put $4,000 in a avings...
Chris Eshden TIME VALUE oF MONEY CLASS PROBEMS If an individal put $4,000 in a avings account today, what amount of cash would be available wo years from today (10% interest)? $4,000 0.826 b $4,000n 0.826 2 $4,0000.826 d $4,0000.909 2 1. a. 2 What is the present value today of S6,000 to be received six years from today (10% inmeresty? a S6,0000.909x6- b. $6,000x 0.751 x 2 @ $6,000 x 0.621 x 0.909 $6,000x 0.683 x3 2 t00 Ca...
You plan to save $4,000 at the end of every year for 25 years and then retire. Given a 8% rate of 4. return, what will...
You plan to save $4,000 at the end of every year for 25 years and then retire. Given a 8% rate of 4. return, what will be the FV of your retirement account at the end of this 25 year period? 4000 (1.08)^25 Calculate with cal www
What is the value today of a money machine that will pay $3,168.00 per year for...
What is the value today of a money machine that will pay $3,168.00 per year for 30.00 years? Assume the first payment is made one year from today and the interest rate is 10.00%. What is the value today of a money machine that will pay $2,756.00 per year for 30.00 years? Assume the first payment is made 7.00 years from today and the interest rate is 6.00%. What is the value today of a money machine that will pay...
What is the present value of the following stream of cash flows: 4,000 in one year, 8,000 in two years and 12,000 in three years if the discount rate is 10%? 19,264 21,455 23,565 25,439 QUESTION 8 What is the present value of a 5 period annuity of $3,000 if the interest rate is 12% and the first payment is in one period? 9,112 10,814 12,112 13,200 QUESTION 9 What is the value of a perpetuity that starts in one...
8) An investment will pay you $21,000 per year for the first 7 years, $23,000 per year for the next 8 years, $24,000 per year for the next 10 years and 25,000 per year for the following 5 years. What will this investment be worth in 30 years from today if interest rates are l 1%?
BIOWEE® TITTEEB Nex ent/d/160AWUQsqylexlusOJV4AG6MjhDAK9jN1RJLUWRhXSc/edit 3. An investment offers $5,500 per year for 15 years, with the first payment occurring one year from today. If the required return is 6%, what is the present value of the investment? Show your work. 4. If you deposit $4,000 at the end of each year for each of the next 20 years into your account which pays 9.7% interest, how muc (4) If you deposit $4,000 at the end of each year for each...
7. You plan to save $10,000 at the end of every year for 30 years and then retire. Given a 10% rate of interest, what will be the FV of your retirement account?
Chris Eshden TIME VALUE oF MONEY CLASS PROBEMS If an individal put $4,000 in a avings account today, what amount of cash would be available wo years from today (10% interest)? $4,000 0.826 b $4,000n 0.826 2 $4,0000.826 d $4,0000.909 2 1. a. 2 What is the present value today of S6,000 to be received six years from today (10% inmeresty? a S6,0000.909x6- b. $6,000x 0.751 x 2 @ $6,000 x 0.621 x 0.909 $6,000x 0.683 x3 2 t00 Ca...
You plan to save $4,000 at the end of every year for 25 years and then retire. Given a 8% rate of 4. return, what will be the FV of your retirement account at the end of this 25 year period? 4000 (1.08)^25 Calculate with cal www
Most questions answered within 3 hours.
-
QUESTION 5
A drug or medicine can reach the brain more effectively by
placing the drug...
asked 9 minutes ago -
Developmental biology
A mouse contains a mutation that results in a failure of their
long
bones...
asked 5 minutes ago -
Alice has the RSA public key (n, e) = (11413, 251) and private
key d =...
asked 6 minutes ago -
Rammazzotti, Inc., is looking for feedback on company
performance. The company compares the budget for the...
asked 11 minutes ago -
A manufacturer of chocolate chips would like to know whether its
bag filling machine works correctly...
asked 19 minutes ago -
Consider the student registration business process at
your college:
1.)Describe the steps necessary for you to...
asked 26 minutes ago -
when released from rest at point A, an unknown ion moves to
point B. At point...
asked 18 minutes ago -
A stock is expected to pay the following dividends: $1.1
four years from now, $1.4 five...
asked 24 minutes ago -
G=yellow and g=green pea seeds. You cross a heterozygous
yellow-seeded plant with a green-seeded plant to...
asked 26 minutes ago -
Current Balance Experiment
a) When there is no current flowing through the electromagnet
coil, is there...
asked 25 minutes ago -
In Visual Basic 2017, Write a complete Main method that prints
Hello, world to the screen....
asked 41 minutes ago -
a) Find the pressure difference on an airplane wing if air flows
over the upper surface...
asked 47 minutes ago