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
$5,790
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If it's 12% per year, compounded annually, then it is: 100 * (1 + 0.12)-2 = 79.72
Future Value = (Present Value)*(1 + i)^n {i is interest rate per compounding period, and n is the number of compounding periods} Memorize this.So if you want to double, then (Future Value)/(Present Value) = 2, and n = 16.2 = (1 + i)^16 --> 2^(1/16) = 1 + i --> i = 2^(1/16) - 1 = 0.044274 = 4.4274 %
Assuming Simple Interest, 9000 + (90 x 7 x 8) ie 9000 + 5040 ie 14040
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
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
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
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
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
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).
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
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
$5,790
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
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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?