Please answer the following questions containing time value problems. Calculate the present value of...

70.2K

Verified Solution

Question

Finance

Please answer the following questions containing time value problems.

  1. Calculate the present value of an annual payment of $3,000 per year for ten years at 8% (ordinary annuity)

2. How much will you have at the end of the 6th year if you invest $5,000 annually for six years at 7% annual rate, if you start one year from today?

Calculate the present value for # 3, 4, 5, if the discount rate is 12%.

3. $45,000 today in one lump sum.

4. $70,000 paid to you in seven equal payments of $10,000 at the end of each of the next seven years.

5. $80,000 paid in one lump sum 7 years from now.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students