What is the present value of $600 to be paid in three yearsusing the following...
What is the present value of $600 to be paid in three years
using the following discount rates: 8 percent in Year 1, 7 percent
in Year 2, and 6 percent in Year 3? (Round your answer to two
decimal places.)
What is the present value of a $600 perpetuity if the interest
rate is 4%? If interest rates doubled to 8%, what would its present
value be? Round your answers to the nearest cent.
-Present value at 4%: $
-Present value at 8%: $
5. Present value
To find the present value of a cash flow expected to be paid or
received in the future, you will the future value cash
flow by (1 + I)NN.
What is the value today of a $12,000 cash flow expected to be
received eight years from now based on an annual interest rate of
6%?
$9,411
$6,023
$11,670
$7,529
Your broker called earlier today and offered you the opportunity
to invest in a security. As a friend,...
Problem 4-17
Present Value for Various Compounding Periods
Find the present value of $600 due in the future under each of
the following conditions. Do not round intermediate calculations.
Round your answers to the nearest cent.
10% nominal rate, semiannual compounding, discounted back 5
years
$
10% nominal rate, quarterly compounding, discounted back 5
years
$
10% nominal rate, monthly compounding, discounted back 1
year
$
(Present value value of an annunity) What is the presnt value of
the following annuities ?
a. $2,400 a year for 8 years discounted back to the presnet at 9
percent.
b. $90 a year for 5 years discounted back to the present at 8
percent.
c. 270$ a year for 12 years discounted back to the present at 12
percent.
d. 450$ a year for 6 years discounted back to the present at 5
percent
A.) What is the...
Find the present value of $600 due in the future under each of
these conditions:
12% nominal rate, semiannual compounding, discounted back 6
years. Do not round intermediate calculations. Round your answer to
the nearest cent.
$
12% nominal rate, quarterly compounding, discounted back 6
years. Do not round intermediate calculations. Round your answer to
the nearest cent.
$
12% nominal rate, monthly compounding, discounted back 1 year.
Do not round intermediate calculations. Round your answer to the
nearest cent....
2
Find the present value of $600 due in the future under each of
these conditions:
12% nominal rate, semiannual compounding, discounted back 9
years. Do not round intermediate calculations. Round your answer to
the nearest cent.
$
12% nominal rate, quarterly compounding, discounted back 9
years. Do not round intermediate calculations. Round your answer to
the nearest cent.
$
12% nominal rate, monthly compounding, discounted back 1 year.
Do not round intermediate calculations. Round your answer to the
nearest...
PRESENT VALUE OF AN ANNUITY -
(a) What is the present value of an asset that pays $10,000 per
year at the end of the next four years if the appropriate discount
rate is 5 percent? What total return would you earn if you bought
this asset and it paid its expected cash flows on time each year
for the next four years? Prove that you earned the same return that
you would have, had you put your money in...