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What is the present value of a security that will pay 5000 in 20 years if securities of equal risk pay 7 percent annually?
Wiki User
∙ 16y ago
With a financial calculator enter the following number: N = 20, I/YR = 7, PMT = 0, and FV = 5000. Solve for PV = $1,292.10.
Wiki User
∙ 16y ago
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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
If the interest rate is 5 percent what is the present value of a security that pays you 1100 next year and 1210 the year after would you be willing to pay 2310 for this security why or why not?
The NPV of this security is calculated as follows: (2310) + 1100/1.05 + 1210/1.05^2 = (164.87) Since the NPV of this investment is negative, you should not buy it.
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Determine the present value of $5,000 to be received 4 years from now at the continuously discounted rate of 8 percent. a) $6,886 b) $3,631 c) $4,616 d) None of the above I think the answer is D, none of the above, because 8% deducted annually from a starting point of 5000 would leave you with 3582 after 4 years.
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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
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If it's 12% per year, compounded annually, then it is: 100 * (1 + 0.12)-2 = 79.72
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
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If the interest rate is 5 percent what is the present value of a security that pays you 1100 next year and 1210 the year after would you be willing to pay 2310 for this security why or why not?
The NPV of this security is calculated as follows: (2310) + 1100/1.05 + 1210/1.05^2 = (164.87) Since the NPV of this investment is negative, you should not buy it.
What is the percent of 03 percent of 1 million?
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