What is the PV of $100 per year for 5 years with a lump sum in...

What is the PV of $100 per year for 5 years with a lump sum in year 5 of $1,000 if the rate is 5%

Expert Solution

Solution :

The PV of $100 per year for 5 years with a lump sum in year 5 of $1,000 if the rate is 5% is = $ 1,216.47

= $ 1,216.4738 ( when rounded off to four decimal places )

= $ 1,216.47 ( when rounded off to two decimal places )

= $ 1,216 ( when rounded off to the nearest whole number )

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

jeff jeffy answered 8 months ago

What is the PV of $779 per year for 5 years if the required return is...

What is the PV of $779 per year for 5 years if the required return is 8.5% (assume the $779 payments come at the end of each of the next 5 years)? Answer to 2 decimal places.

What is the PV of the receipt of $5,000 per year for 5 years at 10%,...

What is the PV of the receipt of $5,000 per year for 5 years at 10%, then $2,500 per year for 5 years, at 12%?

A lump-sum election allows a taxpayer to: Elect ten-year averaging on the lump-sum payment. Evenly allocate the lump-sum...

A lump-sum election allows a taxpayer to: Elect ten-year averaging on the lump-sum payment. Evenly allocate the lump-sum benefit over the current year and the prior years. Include the social security benefits received for prior years in current-year benefits. Treat a lump-sum social security benefit as if the benefits for prior years had been received in

For lump sum payment, an increase of interest rate increases FV and decreases PV. True or...

For lump sum payment, an increase of interest rate increases FV and decreases PV. True or false?

What is the present value of a lump sum, $240,000 in 6 years if the interest...

What is the present value of a lump sum, $240,000 in 6 years if the interest rate (discount rate) is 11.4 percent annually? (Round your answer to 2 decimal places. (e.g., 123,345.16)) Your answer:

What is the lump sum value today for a financial instrument that would pay me $10,000 per year for ten years assuming a discount rate of:

What is the lump sum value today for a financial instrument that would pay me $10,000 per year for ten years assuming a discount rate of:a. 6 percentb. 12 percent

What lump sum deposited today at 12% compounded quarterly for 10 years will yield the same...

What lump sum deposited today at 12% compounded quarterly for 10 years will yield the same final amount as deposits of $3000 at the end of each 6-month period for 10 years at 10% compounded semiannually? The value of the lump sum is $___

Annuities: 4 questions Q1: -PV: I save $200/year for 20 years at 5%. What is the...

Annuities: 4 questions Q1: -PV: I save $200/year for 20 years at 5%. What is the present value of these savings? Q2: -FV: I save $200/year for 20 years at 5%. How much will I have in 20 years? Q3: -Payment: I want a $ 1 million in 25 years. I can earn 7% annually. How much do I need to save each month? Q4: -Rate: I invest $250,000 and receive $20,000/year for next 20 years, what rate am I...

What is the PV of $100 received in year 10 (at a discount rate of 1%)?...

What is the PV of $100 received in year 10 (at a discount rate of 1%)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ b. What is the PV of $100 received in year 10 (at a discount rate of 13%)? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value $ c. What is the PV of $100 received in year 15 (at a...

A Asset Valuation = Price B Wealth Accumulation C Funding – Lump sum funds lump sum...

A Asset Valuation = Price B Wealth Accumulation C Funding – Lump sum funds lump sum D Funding – Lump sum funds ordinary level annuity E Funding – Lump sum funds delayed level annuity F Funding – Ordinary level annuity funds lump sum G Funding – Ordinary level annuity funds delayed level annuity H Choosing Among Alternatives Classify the problem as one of the above types. Choose Only One You are managing a trust fund that must pay its owner...

Question