You will receive $1,000 forever starting from the end of next year. The account pays 10% compounded annually. What is the present value today? A. 1,000 B. 9,091 C. 10,000
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You will receive $1,000 forever starting from the end of next year. The account pays 10% compounded annually. What is the present value today?
A. 1,000
B. 9,091
C. 10,000
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- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
- if the annual rate is 10% and the annual infinity (forever) payment is $1000, what is the present value of perpetuity? a. $15,000 b. $10,000 c. $8,000 d. $5,000You will receive $1,000 forever starting from the end of year 2. The account pays 10% compounded annually. What is the present value today? 1,000 9,091 10,000You will receive $1,000 forever starting from the end of next year. The account pays 10% compounded annually. What is the present value today?A. 1,000B. 9,091C. 10,000
- At the end of two years, what will be the balance in a savings account paying 6% annually if $10,000 is deposited today? The future value of one at 6% for one period is 1.06. a. $10,000 b. $10,600 c. $11,200 d. $11,236Find the present worth of perpetuity of P 6,000 annually with an interest rate of 12% annually if the first payment will be given after 3 years. P 49,587 P 35,612 P 45,780 P 39,860Find the present worth of perpetuity of P 10,000 semi annually with an interest rate of 10% quarterly, if the first payment will be given after 5 years. O P 128,850 P 125,550 P 127,750 O P 126,650
- Compute the present value of a perpetuity that pays $6,744 annually given a required rate of return of 9 percent per annum. Round your answer to 2 decimal places; record your answer without commas and without a dollar sign. Answer Question 4 Assume that you deposit $3,956 each year for the next 15 years into an account that pays 20 percent per annum. The first deposit will occur one year from today (that is, at t = 1) and the last deposit will occur 15 years from today (that is, at t = 15). How much money will be in the account 15 years from today? Round your answer to 2 decimal places; record your answer without commas and without a dollar sign.For $5,000, you can purchase an ordinary annuity that will pay you $920.23 each year for 8 years. The compound annual return implied by this arrangement is closest to Select one: a. 10.5% b. 9.5% c. 10% d. 9%3. What amount will accumulate if we deposit P15,000 at the end of each year for the next 8 years. Assume an interest of 7% computed annually.
