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What is the present value of 2000 discounted back three years if the interest rate is 8 percent compounded monthly?
If a sum of money was invested 36 months ago at 8% annual compounded monthly,and it amounts to $2,000 today, thenP x ( 1 + [ 2/3% ] )36 = 2,000P = 2,000 / ( 1 + [ 2/3% ] )36 = 1,574.51
Is future an abstract?
Yes, the noun 'future' is an abstract noun, a word for a period of time that will come after the present time; a word for an agreed price today for purchase of something to be acquired at a later time; a word for a concept.The word 'future' is also an adjective used to describe a noun.
What is the date 223 days from today?
223 days from today (November 4th) will be June 15th, 2009. (The 16th if it was a leap year.)
Where does Ellen Ochoa live today?
She lives in Texas's.
True or false most governments today are parliamentary in form?
True
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 is the present value of 12500 to be received 10 years from today Assume a discount rate of 8 percent compounded annually and round to the nearest 10?
$5,790
What is the promise of a 100 payment to be received one year from today?
The promise of a $100 payment to be received one year from today represents the future value of that amount. Its present value is less than $100 due to factors like inflation and the opportunity cost of not investing that money today. To determine the present value, one would typically discount the future payment using an appropriate interest rate. Thus, the promise is essentially a commitment to pay that can be evaluated based on its present worth.
Discount price of a 70 item that is on sale for 20 percent off?
Today's special price = (100 percent) minus (20 percent) = 80 percent0.8 x 70 = 56 today only, hurry, the more you buy the more you save.
You purchased an item worth 20000 yesterday with 2 trade discount. After finding out that an item worth 5000 is defected you returned it today. How much is your payable then?
I meant 2 percent discount
The regular price of some patio furniture is 230.00 Today the patio furniture is on sale for 10 percent off What is the amount of the discount?
23.00
Would you rather receive a 1000 today or 2000 in 10 years with a discount rate of 8 percent?
1000 today since I am not sure I will be alive in 10 years to collect the 2000.
As the discount rate becomes higher the present value of inflows approaches?
As the discount rate increases, the present value of future cash inflows decreases. This is because higher discount rates reduce the value of future cash flows, reflecting the opportunity cost of capital and the time value of money. Ultimately, with a sufficiently high discount rate, the present value of future inflows can approach zero, indicating that those future cash inflows are less valuable in today's terms.
Would a dollar tomorrow be worth more to you today when the interest rate is 20 percent or 10 percent?
A dollar tomorrow would be worth more to you today when the interest rate is 10 percent compared to 20 percent. This is because a lower interest rate results in a smaller discounting effect, making the present value of that future dollar higher. At 10 percent, the future value is discounted less, meaning it retains more of its worth in today's terms. Conversely, at 20 percent, the dollar's present value decreases more significantly, making it less valuable today.
How do you calculate present value in financial management?
Present value (PV) is calculated using the formula ( PV = \frac{FV}{(1 + r)^n} ), where ( FV ) is the future value of the cash flow, ( r ) is the discount rate (interest rate), and ( n ) is the number of periods until the payment is received. This formula discounts the future cash flow back to its value today, allowing for the comparison of cash flows occurring at different times. The discount rate typically reflects the opportunity cost of capital or the required rate of return.
What is the percent of teen pregnant today?
50 percent of the teens are pregnant today!
What is the present value of your inheritance?
The present value of your inheritance is the current worth of the future cash flows you expect to receive, discounted back to today's dollars using an appropriate interest rate. To calculate it, you would sum the expected amounts of the inheritance for each future year and discount them based on the chosen rate. This value can significantly differ depending on factors like the timing of the inheritance and the discount rate used. Understanding this helps in assessing the true value of the inheritance in today's terms.
