Question

In: Finance

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.)

Solutions

Expert Solution

Present value FV×(1÷(1+r)^n)
Here,
A Rate per annum 9.00%
B Number of years                                            5
C Number of compoundings per per annum                                            1
A÷C Rate per period ( r) 9.00%
B×C Number of periods (n)                                            5
Future value (FV)                                    2,000
Present value $                          1,299.86
2000×(1÷(1+9%)^5)

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

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?
What is the present value of the following set of cash flows when the discount rate...
What is the present value of the following set of cash flows when the discount rate is 11% p.a. compounded monthly?  (Rounded to the nearest dollar). Year 1 $260 Year 2 $330 Year 3 $800 Year 4 $760 $1,605 $1,660 $1,565 $1,560 None of the above What is the future value of $6,000 invested for 8 years at an annually compounded interest rate of 11.5% p.a.? (Rounded to the nearest dollar). $14,980 $14,220 $14,333 $14,560 None of the above Melbourne Ltd...
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.        You plan to deposit $2,000 for the next five years with the first payment expected at...
1.        You plan to deposit $2,000 for the next five years with the first payment expected at the end of the year. What is the future of the payments at the end of five years if the interest rate is expected to be 8% for the foreseeable future? $12,210.20 $15,431.22 $11,733.20 12,568.40 1.          You expect to receive the annual payments of $2,000 at the end of years 6 , 7, 8, 9 and 10. What is the present value of these payments...
At a discount rate of 11.00%, find the present value of a perpetual payment of $6,500 per year.
At a discount rate of 11.00%, find the present value of a perpetual payment of $6,500 per year. If the discount rate were lowered to 5.50%, half the initial rate, what would be the value of the perpetuity? a. If the discount rate were 11.00%, the present value of the perpetuity is (Round to the nearest cent )
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
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?
Draw a graph showing the present value of a $1000 payment made 10 year in the...
Draw a graph showing the present value of a $1000 payment made 10 year in the future on the y-axis, and discount rate on the x-axis.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT