answersLogoWhite

0


Best Answer

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

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is present value of 500 three years today at 5 percent interest compound annually?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

How much interest is earned on R9 000 invested for five years at 8 percent per annum and compounded annually?

For compound interest F = P*(1 + i)^n. Where P is the Present Value, i is the interest rate per compounding period, and n is the number of periods, and F is the Future Value.F = (9000)*(1 + .08)^5 = 13223.95 and the amount of interest earned is 13223.95 - 9000 = 4223.95


A bank account yields 7 percent interest compounded annually If you deposit 1000 in the account what will the account balance be after five years?

Per annum compound interest formula: fv = pv(1+r)^t Where: fv = future value pv = present (initial) value r = interest rate t = time period Thus, fv = 1000*(1+0.07)^5 = 1000*1.4025517307 = $1402.55


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


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 5000 received in two years if the interest rate is 7 percent?

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


What is the future value in 7 years if the present value is 1 and the interest rate is 2 annually?

Assuming compound interest: Future_value = present_value × (1 + interest_rate_per_period)^number_of_periods We have: present_value = 1 interest_rate_per_period = 2% per year number_of_periods = 7 years (The period is annually or yearly or per year.) → future value = 1 × (1 + 2%)^7 = (1+2/100)^7 = 1.02^7 ≈ 1.45 (to 2 dp).


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 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 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


5 Assuming an interest rate of 11 percent what is the present value of 675 which is currently due in 6 months?

Use the Pert equation. How often is the interest calculated? If it is annually (which I would hope), the calculation is as follows: P = price = 675 e = constant (e on your calculator) R = rate = 0.11/year T = time = 0.5 years 675e^(0.11*6) = $713.16


What is the present worth of Rupees.132 due in 2 years at 5 percent simple interest per annum?

120


What is the formula for present value of ordinary annuity?

A = Present ValueR = Amount of Ordinary Annuityj = %t = termm = periods (annually/ semi-annually/ quarterly)i = j/mn = tmA = R {[1-(1+i)-n] /i}Formula of present valueIf I have the decision to take 1,000,000 in a lump sum or 80,000 ordinary annunity for the next 30 years at 8% interest rate, which of the two opitions should I take and why?