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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))/i
where '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 else can I help you with?
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
What METT-TC factor is at the root of the question do i remember the training i received about what to do when encountering ordnance?
Terrain and Weather
What METT-TC factor is at the root of the question Do I remember the training I received about what to do when encountering unexploded ordnance?
Terrain and Weather
Is alimony considered income?
YES it is and it is entered on your 1040 income tax return line 11 Alimony received
What are the ratings and certificates for From A to Z-Z-Z-Z - 1953?
From A to Z-Z-Z-Z - 1953 is rated/received certificates of: Australia:G
How do you derive PVI formula?
The present value interest factor (PVIF) is derived using the formula: PVIF = 1 / (1 + r)^n. This formula calculates the value of $1 received in the future discounted back to its present value using the interest rate (r) and number of periods (n).
How does one collect their accrued interest?
Accrued interest is obtained when the payment is received to the borrower. When the payment is received, interest is then realized and deposited into your account.
What is the journal entry for Interest due but not received?
debit interest receivablecredit interest income
What is best definition of compounding interest?
Interest paid on interest previously received is the best definition of compounding interest.
How much interest rate every month will be received for 10 million pesos?
The interest rate and the amount of interest received each month will depend on the investment agreement.
What is the journal entry for interest income?
If you actually received the cash then the entry would be Cash Interest Revenue if you haven't yet received cash and are recognizing the interest income.. Interest Receivable Interest Revenue
What you called the difference between interest received interest paid?
its called the spread
Is interest received in advance considered asset or liability?
Interest received in advance is liability of business till the time it is actually earned by business.
What is the best definition of compounding interest-?
Interest paid on interest previously received is the best definition of compounding interest.
What are the direct incomes?
Rent Received Commission Received Scrap Sales Discount on Purchase Interest Received
What is the deffered interest on HH bonds?
Deferred interest on HH bonds refers to the interest that accrues on these U.S. savings bonds but is not paid out until the bond is redeemed or reaches maturity. Unlike other savings bonds that earn interest and compound over time, HH bonds provide fixed semiannual interest payments, which are taxable in the year they are received. If a bondholder chooses to defer these payments, the interest will accumulate and be paid at a later date when the bond is cashed in. This feature allows for flexibility in managing interest income for tax purposes.
When a borrower receives a discount loan the interest total is subtracted from the principal and the borrower receives?
When a borrower receives a discount loan, the total interest amount is deducted from the principal before the loan is disbursed. As a result, the borrower receives a lower amount than the nominal loan amount because the interest is prepaid. This means that the borrower must repay the full nominal amount at maturity, even though they only received the discounted principal. Essentially, the borrower pays interest upfront, which can result in a higher effective interest rate compared to traditional loans.
