Question
In: Accounting
Present Value Computations Assuming that money is worth 10%, compute the present value of Round answers...
Present Value Computations
Assuming that money is worth 10%, compute the present value of
Round answers to the nearest whole number.
1. $7,000 received 15 years from today.
$Answer
2. The right to inherit $1,000,000 14 years from now.
$Answer
3. The right to receive $1,000 at the end of each of the next six years.
$Answer
4. The obligation to pay $3,000 at the end of each of the next 10 years.
$Answer
5. The right to receive $5,000 at the end of the 7th, 8th, 9th, and 10th years from today.
$Answer
Solutions
Expert Solution
The answer has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.
ekkarill92 answered 10 months agoRelated Solutions
the cash flows have a present value of 0. compute thevalue of J, assuming a 10%...
the cash flows have a present value of 0. compute thevalue of J,
assuming a 10% interest rate.
For each of the following, compute the present value: (Do not round intermediate calculations and round...
For each of the following, compute the present value:
(Do not round intermediate calculations and round your
answers to 2 decimal places, e.g., 32.16.)
Present Value
Years
Interest Rate
Future Value
$
11
5
%
$
17,828
3
10
42,017
15
13
795,382
20
12
652,816
Compute the present value of a perpetuity that grows at the rate of 10% for the...
Compute the present value of a perpetuity that grows at the rate
of 10% for the first 10 years and at the rate of 15% from year 11
onwards. The first payment for this perpetuity to be received in
one year from now is $1,000 and the required rate of return is
20%.
Assuming that the current interest rate is 3 percent, compute the present value of a five-year,...
Assuming that the current interest rate is 3 percent, compute
the present value of a five-year, 5 percent coupon bond with a face
value of $1,000. What happens when the interest rate goes to 4
percent? What happens when the interest rate goes to 2
percent?
Instructions: Enter your responses rounded to
the nearest penny (two decimal places).
PV at an interest rate of 3% =
$
PV at an interest rate of 4% = $
The present value (Click to...
2. Assume that no deposit was made until April 30. Compute the following penalties. Assume a 365-day year in your computations. Round your answers to the nearest cent.
Note: In this chapter and in all succeeding work
throughout the course, unless instructed
otherwise, use the following rates, ceiling, and
maximum taxes.
Employee and Employer OASDI:
6.20%
$127,200
$7,886.40
Employee* and Employer HI:
1.45%
No limit
No maximum
Self-employed OASDI:
12.4%
$127,200
$15,772.80
Self-employed HI:
2.9%
No limit
No maximum
1.
Carry the hourly rate and the overtime rate to 3
decimal places and then round off to 2 decimal places (round the
hourly rate to 2 decimal places...
For each of the following, compute the future value: (Do not round intermediate calculations and round...
For each of the following, compute the future value: (Do
not round intermediate calculations and round your answers to 2
decimal places, e.g., 32.16.)
Present Value
Years
Interest Rate
Future Value
$
2,450
10
13
%
$
9,853
23
8
103,305
17
6
241,382
33
4
For each of the following, compute the future value: (Do not round intermediate calculations and round...
For each of the following, compute the future value: (Do
not round intermediate calculations and round your answers to 2
decimal places, e.g., 32.16.)
Present Value
Years
Interest Rate
Future
Value
$
1,850
11
13
%
$
7,952
7
9
68,355
14
12
175,796
8
6
This week we learned computations and the time value of money. Briefly explain the time value...
This week we learned computations and the time value of money.
Briefly explain the time value of money, its methods, and how it
applies to NPV. When computations are performed, it is important to
justify your work by showing how the answer was determined via
narrative, calculations, and formulas. Presentation is also very
important and is a quality aspect in addition to utilizing a table
to present data and answers.
Compute the present values of the following annuities first assuming that payments are made on the...
Compute the present 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
decimal places. (e.g., 32.16)) Payment Years Interest Rate (Annual)
Present Value (Payment made on last day of period) Present Value
(Payment made on first day of period) $ 758.09 7 13% $ $ 8,768.26
13 6...
Compute the present values of the following annuities first assuming that payments are made on the...
Compute the present 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
decimal places. (e.g., 32.16))
Payment Years. Interest Rate (Annual)
828.09. 8. 14%
9,468.26. 14. 7%
21,822.93. 24. 5%
71, 212.54. 5. 32%
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