Question

In: Finance

What is the Present Value of a cash payment of $25,769 received27 years from today...

What is the Present Value of a cash payment of $25,769 received 27 years from today which is discounted at a continuously compounded 2.2% rate of interest?

Solutions

Expert Solution

PV = FV * e^(-rt)

PV = 25,769 * e^(-0.022 * 27)

PV = 25,769 * e^(-0.594)

PV = 25,769 * 0.5521144043

PV = $14,227.4360844067


Related Solutions

What is the Present Value of a cash payment of $38,666 received 14 years from today...
What is the Present Value of a cash payment of $38,666 received 14 years from today which is discounted at a continuously compounded 1.5% rate of interest?
What is the Present Value of a cash payment of $17,434 received 28 years from today...
What is the Present Value of a cash payment of $17,434 received 28 years from today which is discounted at a continuously compounded 2.5% rate of interest?
1. What is the present value of $160,000 to be received in 9 years from today?...
1. What is the present value of $160,000 to be received in 9 years from today? Assume a per annum discount rate of 9%, compounded annually. (Round to the nearest penny, e.g. 1234.56) Answer: 2. You just purchased a parcel of land for $73,000. To earn a 14% annual rate of return on your investment, how much must you sell the land for in 5 years? Assume annual compounding. (Round to the nearest penny, e.g. 1234.56) Answer: Earnest T needs...
what is the present value of $6320 to be recieved exactly 32 years from today assuming...
what is the present value of $6320 to be recieved exactly 32 years from today assuming an interest rate of 3.5% p.a?
What is the present value of $5,000 received: a. Twenty years from today when the interest...
What is the present value of $5,000 received: a. Twenty years from today when the interest rate is 8% per​ year? b.Ten years from today when the interest rate is 8% per​ year? c.Five years from today when the interest rate is 8% per​ year? -------------------------------------------------------------------------------------------- a. Twenty years from today when the interest rate is 8% per​ year?The present value of $5,000 received 20 years from today when the interest rate is 8% per year is ​$____. ​(Round to...
What is the present value of a $2,000 payment made in five years when the discount...
What is the present value of a $2,000 payment made in five years when the discount rate is 9 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The present value of $20,000 to be received 25 years from today, assuming an opportunity cost...
The present value of $20,000 to be received 25 years from today, assuming an opportunity cost of 18 percent is
the present value of an annuity for 2 years, with the first payment at the end...
the present value of an annuity for 2 years, with the first payment at the end of 10 years is 40,239 pesos. If money is worth 4.94%, what is the value of an annuity for 5 years?
Present Value of an Annuity What is the present value of a $400 annuity payment over...
Present Value of an Annuity What is the present value of a $400 annuity payment over 6 years if interest rates are 9 percent? $670.84 $2,013.18 $238.51 $1,794.37
Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of...
Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 25-year annuity is $1.9 million and the annuity earns a guaranteed annual return of 13 percent. The payments are to begin at the end of seven years.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT