1. Calculate the present value of receiving a payment of $14,000 in 5 years with a...

 

 

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1. Calculate the present value of receiving a payment of $14,000 in 5 years with a discount rate of 7.5% a. Calculate the future value of the above scenario. 2. Calculate the present value of a perpetuity with an annual payment of $1,000 and a discount rate of 6.5%. The first payment begins in one year. a. Calculate the present value of the above perpetuity but instead the payments begin today instead of in one year. 3. Calculate the PV of a perpetuity with an annual payment of $3,000, a discount rate of 4.75% and growth rate of 3%. The first payment begins in one year. 4. You have an Annual Percentage Rate (APR) of 18% and the compounding is monthly. What is the Effective Annual Rate? 1. Calculate the present value of receiving a payment of $14,000 in 5 years with a discount rate of 7.5% a. Calculate the future value of the above scenario. 2. Calculate the present value of a perpetuity with an annual payment of $1,000 and a discount rate of 6.5%. The first payment begins in one year. a. Calculate the present value of the above perpetuity but instead the payments begin today instead of in one year. 3. Calculate the PV of a perpetuity with an annual payment of $3,000, a discount rate of 4.75% and growth rate of 3%. The first payment begins in one year. 4. You have an Annual Percentage Rate (APR) of 18% and the compounding is monthly. What is the Effective Annual Rate?

Answer rating: 100% (QA)

To calculate the present value of receiving a payment of 14000 in 5 years with a discount rate of 75 we can use the formula for present value Present ... View the full answer