pv= Fv/((1+i)^n) fv=2500 n= 20/3=6.6667 i= 10%/4=2.5%
pv= 2500/(1+2.5%)^6.6667= 2500/1.178943= 2120.54 present value
Question 6(1 point) You have an investment that will mature in 20 months with the value of $2500. You need some qui...
Question 6(1 point) You have an investment that will mature in 20 months with the value of $2500. You need some quick cash and decide to sell it today at a discount rate of 10% compounded quarterly. What is the cash value? $659.23 b $2009.63 Oc $2120.54 d $2219.63 Question 6(1 point) You have an investment that will mature in 20 months with the value of $2500. You need some quick cash and decide to sell it today at a...
Question 22 (1 point) Calculate the cash value of a bond that will mature with a value of $16 500 in 7 years and 5 months. The bond is discounted at 5.8% compounded semi-annually. O A) $10 979.48 B) $11 117.48 OC) $10 797.48 OD) $10 997.48 O E) $10 779.48
Question 22 (1 point) Calculate the cash value of a bond that will mature with a value of $16 500 in 7 years and 5 months. The bond is discounted at 5.8% compounded semi-annually. OA) $10 979.48 B) $11 117.48 OC) $10 797.48 OD) $10 997.48 O E) $10 779.48
Question 21 (1 point) A $8000.00 investment matures in five years, three months. Find the maturity value if interest is 12% p.a. compounded quarterly. A
I need help on question 9. 20 Time Value of Money Exercise: Question 1: Assume you deposit $700 every three months at a 6 percent annual rate, compounded quarterly. How much will you have at the end of 20 years? Question 2 You borrow a five-year $13,000 loan with monthly payments of $250. What is the annual percentage rate (APR) on the loan? Question 3: How much would you have to invest today to receive $50,000 in 10 years at...
Question 7 (1 point) Your brother has asked you to help him with choosing an investment. He has $6,400 to invest today for a period of two years. You identify a bank CD that pays an interest rate of 0.0500 annually with the interest being paid quarterly. What will be the value of the investment in two years? Round to two decimal places. Question 8 (1 point) You are evaluating a growing perpetuity product from a large financial services firm....
You have discovered an investment opportunity that earns an) 3% rate of interest compounded quarterly. Which of the following amounts is approximately equal to the amount you should deposit today to have $8,000 in five years? Use the formula method. (Do not round any intermediary calculations, and round your final answer to the nearest dollar.) Which of the following statements is true? O A. The higher the discount rate, the higher the present value. OB. If interest is 4% compounded...
Please answer both Question 23 (1 point) You are to receive $800 in 5 years. If the discount rate suddenly increases, the present value of the $500 will: O a. Increase b. Decrease 5 c. Stay the same 20 d. Cannot tell Save Question 24 (G point) Question 24 (1 point) An investment pays $500 at the end of every 6 months (semi-annually) for the next 3 years. If the annual interest rate is 12% compounded semi-annually, the present value...
I need help on question 4. Time Value of Money Exercise: Question 1: Assume you deposit $700 every three months at ercent annual rate, compounded $700 every three months at a 6 percent am much will you have at the end of 20 years? Question 2: You borrow a five-year $13.000 loan with monthly percentage rate (APR) on the loan? 3,000 loan with monthly payments of $250. What is the annual Question 3: How much would you have to invest...
A real estate developer offers to sell you some prime real estate for $584,000 today. You agree to pay $224,000 in exactly 6 months but the balance in exactly 22 months from today when you expect to receive some cash from an investment. How much will you need to pay the developer in 22 months if the interest rate is 13.5% per annum compounding monthly