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What is the present value of 5000 received in two years if the interest rate is 7 percent?
Wiki User
∙ 14y ago
Assuming interest is compounded annually, the present value is 5,000 divided by 1.072 .07 is the intererst rate. The exponent is the number of years (2). So the answer is 4,367.20. After the first year, the value is 4367.20 x 1.07 = 4,672.90 Then, at the end of the second year: 4,672.90 x 1.07 = 5,000
Wiki User
∙ 14y ago
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If the interest rate is 4 percent what is the present value of this stream of payments?
Present value of streams can be found by dividing the streams with 4 percent interest rate for example if stream is 100 then present value will be present value = 100 / .04
If the interest rate is 7 percent What is the present value of 150 to be received in 10 years?
pv= 150/(1+.07)^10 76.14
What is the present value of a 30 year annuity with payments of 7000 per year if interest rates are 8 percent annually?
85,109 if the payments are received at the start of each year and 78,804 if they are received at the end of each year
What is the present value of a 30 year annuity with payments of 800 per year if interest rates are 12 percent annually?
The PV of a 30 year 800 per year annuity is 6,444 if the payment is received at the end of the year and 7,217 is the payment is received at the start of the year
What is the Present value of 700 to be received in two installments of 350 two years from today at a discount rate of 10 percent?
i think the present of 700 is 700%
If the interest rate is 4 percent what is the present value of this stream of payments?
Present value of streams can be found by dividing the streams with 4 percent interest rate for example if stream is 100 then present value will be present value = 100 / .04
If the interest rate is 7 percent What is the present value of 150 to be received in 10 years?
pv= 150/(1+.07)^10 76.14
What is the present value of a 30 year annuity with payments of 7000 per year if interest rates are 8 percent annually?
85,109 if the payments are received at the start of each year and 78,804 if they are received at the end of each year
As the interest rate increases the present value of an amount to be received at the end of a fixed period?
increases
What is the present value of 2500 to be received at the beginning of each of 30 periods and discounted at 10 percent compound interest?
The present value of a series of payments with compound interest and payments at the end of a period can be found by the formula:PV = c * (1-(1+i)^(-n))/iwhere 'c' is the amount of the periodic payment,n is the number of periods, and i is the interest rate per period.Since you want to find the Present Value for payments starting at the beginning of the period, you would receive 1 payment of 2500 now, which would have a present value of 2500, plus the present value of 29 payments received at the end of the period:PV = 2500 + 2500 * (1-(1+.10)^(-29))/(0.10) = 25924.01
What is the present value of 500 to be received 10 yrs from today if it is discount at the rate of 6 percent?
What is the present value of 500 to be recieved 10 yrs from today if it is discount at the rate of 6 percent?
What is the present value of a 30 year annuity with payments of 800 per year if interest rates are 12 percent annually?
The PV of a 30 year 800 per year annuity is 6,444 if the payment is received at the end of the year and 7,217 is the payment is received at the start of the year
What is present value of 500 three years today at 5 percent interest compound annually?
If you're simply adding five percent onto the value at the end of each of the three years - the final value would be 578.8125
What is the Present value of 700 to be received in two installments of 350 two years from today at a discount rate of 10 percent?
i think the present of 700 is 700%
What will be the present value of 1000 received at the end of year 3 and then every two years after that. Using an interest rate of 18 percent per year?
It looks like there is no end date, so that means that 2 years of interest generate 1000: F3 * 1.182 - F3 = 1000 ; F3 = 2548.42, Then calculate the present value from F3:F3 = 2548.42 = P * (1.18)3 --> P = 1551.05
Does the present value of money increase as the number of years before the payment is received increases?
No, it should decrease, assuming the interest rate is the same.
What is the definition of present value?
The principal which, drawing interest at a given rate, will amount to the given sum at the date on which this is to be paid; thus, interest being at 6%, the present value of $106 due one year hence is $100.
