Question

What is the present value of ​$50 to be paid in five years if the interest...

What is the present value of ​$50 to be paid in five years if the interest rate is 10​%? PV​ = ​$_____ ​(Round your response to two decimal​ places.)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Present value = Future value / (1 + r)n

Present value = 50 / (1 + 0.1)5

Present value = 50 / 1.61051

Present value = $31.05

Add a comment
Know the answer?
Add Answer to:
What is the present value of ​$50 to be paid in five years if the interest...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • what the present value of a $900 annuity payment over five years if interest rates are...

    what the present value of a $900 annuity payment over five years if interest rates are 8 percent (Do not round intermediate calculations and round your final answer to 2 decimal places (1 x connect.mheducation.com/flow/connect.html diting Business Dash Board Amazin.. RESPONSE MAGIC BRUNETTE MARKE SKATEBASE ork Problem Set (10 Questi... Saved Help Save & Exit Submi Cipboard Font Styles A1 A B C D E G H What annual rate of return is eaned on a $5,000 investment when it...

  • Assuming that the current interest rate is 6 percent, compute the present value of a five-year,...

    Assuming that the current interest rate is 6 percent, compute the present value of a five-year, 10 percent coupon bond with a face value of $1,000. What happens when the interest rate goes to 7 percent? What happens when the interest rate goes to 5 percent? Instructions: Enter your responses rounded to the nearest penny (two decimal places). PV at an interest rate of 6%-$ PV at an interest rate of 7%-$ The present value (Click to select) when the...

  • The present value of a loan in which ​$3000 is to be paid out a year...

    The present value of a loan in which ​$3000 is to be paid out a year from today with the interest rate equal to 22​% is _________? ​(Round your response to the neareast two decimal​ place) If a loan is paid after two​ years, and the amount ​$5000 is to be paid then with a corresponding 22​% interest​ rate, the present value of the loan is ______? ​(Round your response to the neareast two decimal​ place) ______________ is based on...

  • Present Discounted Value is based on the notion that a dollar paid in the future is...

    Present Discounted Value is based on the notion that a dollar paid in the future is less valuable than a dollar paid today The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 2% is (Round your response to the nearest two decimal place) If a loan is paid after two years, and the amount $7000 is to be paid then with a corresponding 3% interest...

  • What is the present value of $1 to be paid out in seven years with an...

    What is the present value of $1 to be paid out in seven years with an interest rate of 10%? (2 pts) What is the present value of $80 to be paid out in seven years with an interest rate of 10% (2 pts) What is the present value of $400,000 to be paid out in ten years with an interest rate of 6%? (2 pts) What is the future value of $100,000 in five years at an annual interest...

  • If the market rate of interest is 11 percent, what is the present discounted value of...

    If the market rate of interest is 11 percent, what is the present discounted value of $1,000 that will be paid in Instructions: Round your responses to two decimal places. a. 1 year? $ b. 5 years? $ c. 10 years? $

  • At what nominal rate of interest, convertible monthly, is $10,000 the present value of $164.64 paid...

    At what nominal rate of interest, convertible monthly, is $10,000 the present value of $164.64 paid at the beginning of each month for 7 years? Round your answer to 3 decimal places.

  • 1. What is the present value of a $1,200 payment made in five years when the...

    1. What is the present value of a $1,200 payment made in five years when the discount rate is 9 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) 2. What is the future value of a $1,000 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) 3. What's the present value of a $930 annuity payment over five years...

  • 1. What is the present value of a $1,200 payment made in five years when the...

    1. What is the present value of a $1,200 payment made in five years when the discount rate is 9 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) 2. What is the future value of a $1,000 annuity payment over four years if interest rates are 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) 3. What's the present value of a $930 annuity payment over five years...

  • If the interest rate is 6%, the present value of S800 to be received 5 years...

    If the interest rate is 6%, the present value of S800 to be received 5 years from today is S Round your response to the nearest two decimal place) You are in a car accident, and you receive an insurance settlement of $5500 per year for the next three years. The first payment is to be received today. The second payment is to be received one year from today, and the third payment two years from today.If the interest rate...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT