What is the present value of the following future amounts? a. $805 to be received 10 years

Question:

What is the present value of the following future amounts?

a. $805 to be received 10 years from now discounted back to the present at 10 percent

b. $376 to be received 5 years from now discounted back to the present at 5 percent

c. $1,203 to be received 8 years from now discounted back to the present at 4 percent

d. $1,203 to be received 8 years from now discounted back to the present at 12 percent

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Foundations Of Finance

ISBN: 9781292318738

10th Global Edition

Authors: Arthur Keown, John Martin, J. Petty

See More Books

Question Posted: Apr 14, 2024 10:00 AM

See More Questions

What is the present value of the following future amounts? a. $ 800 to be received 10 years from now discounted back to the present at 10 percent b. $ 300 to be received 5 years from now discounted...
What is the present value of the following future amounts? A- $800 to be received 10 years from now discounted back to the present at 10 percent B- $300 to be received 5 years from now discounted...
What is the present value of the following future amounts? a. $800 to be received 10 years from now discounted back to the present at 10 percent b. $300 to be received 5 years from now discounted...
12 7. In a group of 7 employees and 5 non-employees, four people must be chosen to ride together in a company vehicle with four seats. How many seating arrangements are possible if at least two...
The Flying Gator Corporation and its 100%-owned subsidiary, T Corporation, have filed consolidated tax returns for many years. Both corporations use the hybrid method of accounting and the calendar...
An oil film with refractive index 1.25 floats on water. The film thickness varies from 0.80m to 2.1m. If 630-nm light is incident normally on the film, at how many locations will it undergo enhanced...
What is the difference between object-oriented languages and UML?
Use the model in File C08 to solve this problem. Stendardi Industries 2015 financial statements are shown in the following table. Assume that the firm has no excess capacity in fixed assets, that the...
(b) What risk factors might pertain to a private equity investment in the pandemic? (9 marks) (c) Explain how a MBO deal is usually structured both in terms of its corporate/legal structure and its...
Obaidullah Hamzah, who recently sold his Ford Mustang, placed $15,000 in a savings account paying annual compound interest of 7 percent. a. Calculate the amount of money that will be accrued if he...
At what annual rate would the following have to be invested? a. $$820$ to grow to $$1,988.12$ in 13 years b. $$320$ to grow to $$423.10$ in 6 years c. $$57$ to grow to $$290.30$ in 18...
Explain the problems we encounter if we use IP addresses as the node identifiers in a DHT.
A number of investment strategies based on risk factor research have been lumped under the heading "smart beta," but are they smart? What are the arguments for and against smart beta strategies and...
A group of Redditors on the WallStreetBets board have been having a heyday driving up the value of a handful of stocks (along with the cryptocurrency Dogecoin) to stratospheric levels. The news has...
What are the basic dynamics of probabilities?
The current spot price of gold is $1280 per ounce. The forward price for 1 year delivery is $1400. Suppose an investor can borrow at 3% per year (simple interest). How can the investor make a...
Which securities pay dividends?
What information does the term symbol F, provide about the angular momentum of an atom?
Danielle has an insurance policy with a premium of $75 per month. In September she is in an accident and receives a bill worth $2990 for the repair of her own property. Her deductible is $250 and her...
A wire loop is at rest in the uniform magnetic field B . The emf of 2 0 V is induced in the loop by reducing the magnetic field from B to zero in 2 0 ms . What emf will be induced in the same loop if...
piece of ice is placed on a bi-metal strip as shown to the right. Assuming the weight of the ice is insignificant, what happens and why?
What if we are not and we make change, just for the sake of making change and believing that it is popular. What kind of leadership is this?

What is the present value of the following future amounts? a. $805 to be received 10 years

Question:

Step by Step Answer:

To calculate the present value of future amounts we use the formula Present Value Future ...View the full answer

Foundations Of Finance

Students also viewed these Business questions