Question

In: Accounting

An investment will pay $16,100 at the end of each year for eight years and a...

An investment will pay $16,100 at the end of each year for eight years and a one-time payment of $161,000 at the end of the eighth year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)


Determine the present value of this investment using a 6% annual interest rate. (Round your answer to the nearest whole dollar.)

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

An investment promises to return $8,000 at the end of each of the next eight years...
An investment promises to return $8,000 at the end of each of the next eight years and then $3,000 at the end of each of the remaining seven years (years 9 through 15). What is the value of this investment today at a 9 percent interest rate?
A) An investment will pay $100 at the end of each of the next 3 years,...
A) An investment will pay $100 at the end of each of the next 3 years, $400 at the end of Year 4, $600 at the end of Year 5, and $800 at the end of Year 6. If other investments of equal risk earn 5% annually, what is its present value? Round your answer to the nearest cent. B) What is its future value? Round your answer to the nearest cent.
Kristi is considering an investment that will pay $7,500 a year for eight years, starting one...
Kristi is considering an investment that will pay $7,500 a year for eight years, starting one year from today. How much should she pay for this investment if she wishes to earn a 6% rate of return? Provide complete calculations in your answer Kristi was offered three (3) different assets, as listed below:  Asset 1 pays annual interest rate of 9% compounding annually.  Asset 2 pays annual interest rate of 8.9% compounding semi-annually.  Asset 3 pays interest...
An investment will pay $150 at the end of each of the next 3 years, $200 at the end of year 4, $350 at the end of year 5, and $550 at the end of year 6.
An investment will pay $150 at the end of each of the next 3 years, $200 at the end of year 4, $350 at the end of year 5, and $550 at the end of year 6. If other investments of equal risk earn 9% annually, what is the present value? Its future value? Do not round intermediate calculations. round your answers to the nearest cent.
An investment will pay $10 at the end of each of the next 3 years, $40...
An investment will pay $10 at the end of each of the next 3 years, $40 at the end of Year 4, $50 at the end of Year 5, and $60 at the end of Year 6. If other investments of equal risk earn 8% annually, what is this investment’s future value?
An investment will pay $200 at the end of each of the next 3 years, $400...
An investment will pay $200 at the end of each of the next 3 years, $400 at the end of Year 4, $450 at the end of Year 5, and $650 at the end of Year 6. If other investments of equal risk earn 11% annually, what is this investment's present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent.
An investment will pay $50 at the end of each of the next 3 years, $250...
An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 4% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $    Future value: $
An investment will pay $50 at the end of each of the next 3 years, $250...
An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 4% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $   Future value: $  
An investment will pay $50 at the end of each of the next 3 years, $250...
An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $400 at the end of Year 5, and $500 at the end of Year 6. If other investments of equal risk earn 12% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent.
An investment will pay $100 at the end of each of the next 3 years, $250...
An investment will pay $100 at the end of each of the next 3 years, $250 at the end of Year 4, $400 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 6% annually, what is its present value? Round your answer to the nearest cent. $ If other investments of equal risk earn 6% annually, what is its future value? Round your answer to the nearest cent.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT