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?

Expert Solution

Given that,

FV = $6320 will be received in t = 32 years from now

Interest rate earned r = 3.5%

So, present value invested = FV/(1+r)^t = 6320/(1.035)^32 = $2101.97

So, present value of the amount is $2101.97

jeff jeffy answered 2 years ago

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

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?

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...

a. What is the present value (PV) of $70,000 received six years from now, assuming the...

a. What is the present value (PV) of $70,000 received six years from now, assuming the interest rate is 4% per year? a. $47,024 b. $45,500 c. $96,814 d. $55,322 b. Convex Industries has inventories of $212 million, current assets of $1.20 billion, and current liabilities of $528 million. What is its quick ratio? a. 1.87 b. 2.25 c.0.94 d.0.75

a. What is the present value (PV) of $60,000 received thirty years from now, assuming the...

a. What is the present value (PV) of $60,000 received thirty years from now, assuming the interest rate is 6% per year? a. 10,447 b.8880 c. 18,282 d. 39,000 b. If $546 invested today yields $600 in one year's time, what is the discount factor? a. 1.91 b. 0.09 c. 1.82 d. 0.91 c. If the one-year discount factor is equal to 0.95238, the interest must be equal to: a.5.0% b. 4.5% c.2.5% d.4.0%

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?

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 perpetuity that starts paying exactly two years from now 1,000 per year?

What is the present value of a perpetuity that starts paying exactly two years from now 1,000 per year? Assume required rate of return is 10% $8,789.12 $10,000 $8,264.46 $9090.91

Present Value 6a. What is the present value of $1,000,000, due 25 years from now? ...

Present Value 6a. What is the present value of $1,000,000, due 25 years from now? b. What is the present value of a $40,000 ordinary annuity for 25 years? c. What is the present value of a $40,000 perpetuity, if the first payment is 1 year from now? d. What is the present value of a $40,000 perpetuity, if the first payment is now? Using formula or Excel function

Question