What is the present value of a $7000 payment made in six years when the discount rate is 4 percent?
Asked by: Adele Sauer V | Last update: July 14, 2025Score: 4.3/5 (1 votes)
Hence, the present value is $5,532.28.
What is the present value of a $7000 payment made in six years when the discount rate is 4 percent Quizlet?
Intermediate calculations are not rounded off. Only the final answer has been rounded off to 2 decimal places. As a result, the present value of a $7,000 payment made in six years, with a discount rate of 4%, is $5,532.20.
What is the present value of a $10,000 perpetuity at a 6 percent discount rate?
Calculate the present value of a $10,000 perpetuity at a 6 percent discount rate. Answer: PV = $166,667 6. Calculate the future value of an annuity of $5,000 each year for eight years, deposited at 6 percent. Answer: FV = $49,487.34 7.
What is the present value of $6000 to be received at the end of 6 years if the discount rate is 12%?
The present value, or initial investment required, works out to be roughly $3,359.31. B. The present value of $6,000 to be received at the end of 6 years at a discount rate of 12% is also approximately $3,359.31.
What is the present value of $7000 to be received at the end of each of 20 periods discounted at 5% compound interest?
Explanation: The present value of $7,000 to be received at the end of each of 20 periods, discounted at 5% compound interest is $87,234 ($7,000 x 12.462), which has been computed by multiplying the annual cash inflow with the present value annuity factor.
What Is The Present Value Of A $750 Payment Made In Three Years When The Discount Rate Is 5%?
What is the present value of $10000 discounted at 5% per year and received at the end of 5 years?
The present value of $10,000 discounted at 5% per year and received at the end of 5 years is. Therefore, the amount received at the end of 5 years is $ 7737.81.
What is the present value of $1000 to be received in 5 years if the discount rate is 12.78% group of answer choices?
Summary: The present value of $1,000 to be received in 5 years is $548 if the discount rate is 12.78%.
How do I calculate present value?
The present value formula is PV = FV/(1 + i) n where PV = present value, FV = future value, i = decimalized interest rate, and n = number of periods. It answers questions like, How much would you pay today for $X at time y in the future, given an interest rate and a compounding period?
What is the present value of a $1000 discount bond with five years?
Computation of the present value: The present value of $1,000 in 5 years at a 6% interest rate is computed by dividing the future value, i.e., $1,000, by the 1 added to the interest rate, i.e., 6% for 5 years. Thus, the present value of $1,000 in 5 years at a 6% interest rate is $747.26.
What is the present value of $1000 to be received in 10 years?
Answer and Explanation:
Since the amount is received after 10 years, the amount must be discounted using the discount rate of 10% in the present value formula. The present value of the amount to be received is $613.91.
What is the present value of $21797 to be received in one year if the discount rate is 5.1 percent?
What is the present value of $21,797 to be received in one year if the discount rate is 5.1 percent? $20.715. 46.
What is the present value of $3,500 earning 15 percent for 8 years?
**Calculate the present value:** \[ PV = \frac{3,500}{3.059} \approx 1,144.50 \] So, the present value of $3,500 earning 15 percent for 8 years is approximately **$1,144.50**.
What is the present value of a $7000 payment made in 6 years when the discount rate is 4%?
Hence, the present value is $5,532.28.
What is the present value of a payment of $100 to be made one year from today?
Present value is the value today of an amount of money in the future. If the appropriate interest rate is 10 percent, then the present value of $100 spent or earned one year from now is $100 divided by 1.10, which is about $91.
What is the present value of $5000 to be received 5 years from now if the interest rate is 8 percent?
**Calculate the Present Value:** PV ≈ $5,000 / 1.46933 ≈ $3,403.68 Therefore, the present value of $5,000 to be received five years from now, with an interest rate of 8%, is approximately $3,403.68. This means that if you had $3,403.68 today and invested it at an 8% interest rate, it would grow to $5,000 in five years.
What is the present value of $4000 to be received in 6 years at a 7.5 percent interest rate?
Expert-Verified Answer
The present value of $4,000 to be received in 6 years at an interest rate of 7.5% is approximately $2,695.40. The closest answer choice to this value is $2,591.85, which is the best option.
What is the present value of the discount rate?
The Present Value (PV) of an investment is what that investment's future cash flows are worth TODAY based on the annualized rate of return you could potentially earn on other, similar investments (called the “Discount Rate”).
What is a present formula?
The formula for present value is: PV=FV/(1+r) n. In this formula, PV= Present Value, the value of a future sum of money today; FV= Future Value, the amount of money to be received int he future; r=Interest Rate, discount rate, expressed as a decimal; and n=Number of Periods, the time between the present and future ...
What is the present value of $100 to be received 10 years from today?
Answer and Explanation:
Future value (FV) is $100. Number of years (n) is 10 years. Opportunity cost (r) is 9%. Hence, the present value of $100 to be received 10 years from today is $42.241.
What is the present value of receiving a single amount of $5000 at the end of three years if the time value of money is 8% per year compounded quarterly?
We see that the present value of receiving $5,000 three years from today is approximately $3,940.00 if the time value of money is 8% per year, compounded quarterly.
How do you calculate the present value of a dollar?
For example, if a company receives $1 in 30 years time, and it uses a discount rate of 7 percent, then the present value factor is 1/(1 + . 07)30 = 0.13. In other words, $1 in 30 years' time is equivalent to 13 cents today.
How to calculate present value with example?
The time is t = 4 years. n = 1 (as the amount is compounded annually). The rate of interest is, r = 5% =0.05. PV = 4500 / (1 + 0.05/1)1(4) = 4500 / (1.05)4 = 3,800 (The answer is rounded to the nearest thousands).
What is the present value of $1000 five years from now at 10% interest?
We obtain $620.92, the present value of $1000 in 5 years, with a rate of return of 10% annually.