# Question

Determine the present values (PVs) if $5,000 is received in the future (i.e., at the end of each indicated time period) in each of the following situations:

a. 5 percent for ten years

b. 7 percent for seven years

c. 9 percent for four years

a. 5 percent for ten years

b. 7 percent for seven years

c. 9 percent for four years

## Answer to relevant Questions

Determine the present value (PV) if $15,000 is to be received at the end of eight years and the discount rate is 9 percent. How would your answer change if you had to wait six years to receive the $15,000? You are considering borrowing $150,000 to purchase a new home. a. Calculate the monthly payment needed to amortize an 8 percent fixed-rate 30-year mortgage loan. b. Calculate the monthly amortization payment if the ...What would be the present value (PV) of a $9,532 annuity for which the first payment will be made beginning one year from now, payments will last for 27 years, the annual interest rate is 13 percent, quarterly discounting ...Describe what is meant by bond covenants. What does it mean with the horizon spreads in Figure 10.7 dip below the X-axis? Why do some feel that this was not to be the case in 2006?Post your question

0