What's the present value, when interest rates are 8.0 percent, of a $160 payment made every...

What's the present value, when interest rates are 8.0 percent, of a $160 payment made every year forever?

Expert Solution

Amount of Perpetual payment	$160
(/) Interest rate	8%
Present value	$2000

jeff jeffy answered 3 years ago

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.)

Determining the present value of bonds payable Interest rates determine the present value of future amounts

Question: Determining the present value of bonds payable Interest rates determine the present value of future amounts. (Round to the nearest dollar.) Requirements 1. Determine the present value of 10-year bonds payable with face value of $86,000 and stated interest rate of 14%, paid semiannually. The market rate of interest is 14% at issuance. 2. Same bonds payable as in Requirement 1, but the market interest rate is 16%. 3. Same bonds payable as in Requirement 1, but the...

32. The discounted present value of a payment is the value _ of the payment _....

32. The discounted present value of a payment is the value ___ of the payment ___. a. today; made yesterday b. tomorrow; made today c. today; made tomorrow d. tomorrow; made yesterday e. yesterday; made today 33. The term structure of interest rates: a. represents the variation in yields for similar instruments differing only in maturity. b. reflects differing tax treatment received by different instruments. c. always results in an upward-sloping yield curve. d. usually results in an inverted yield...

What's the present value of $23,000 discounted back 5 years if the appropriate interest rate is...

What's the present value of $23,000 discounted back 5 years if the appropriate interest rate is 4%, compounded semiannually?

Payment Years Interest Rate (Annual) Future Value (Payment made on last day of period) Future Value...

Payment Years Interest Rate (Annual) Future Value (Payment made on last day of period) Future Value (Payment made on first day of period) $283 15 15 % 6,155 10 12 76,084 7 14 168,932 11 5 Compute the future values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2...

Question

What's the present value, when interest rates are 8.0 percent, of a $160 payment made every...

Solutions

Expert Solution

Related Solutions

What is the present value of a $2,000 payment made in five years when the discount...

Determining the present value of bonds payable Interest rates determine the present value of future amounts

32. The discounted present value of a payment is the value _ of the payment _....

What's the present value of $23,000 discounted back 5 years if the appropriate interest rate is...

Payment Years Interest Rate (Annual) Future Value (Payment made on last day of period) Future Value...

Draw a graph showing the present value of a $1000 payment made 10 year in the...

Calculating Interest Rates. Solve for the unknown interest rate in each of the following. PRESENT VALUE...

Calculating Interest Rates Solve for the unknown interest rate in each of the following: Present Value...

What's the present value of $7,500 discounted back 5 years ifthe appropriate interest rate is...

A $1,000 par value bond has a coupon interest rate of 6 percent. The interest payment...