If the interest rate is positive, the the present value of an ordinary annuity will less than the present value of the annuity due.
What would happen opposite?
Posts Tagged ‘Present’
If the interest rate is negative, present value of an annuity due would be?
22
Aug
Present value index help please!!!?
18
Jul
A project has estimated annual net cash flows of $82,000 for five years and is estimated to cost $259,000. Assume a minimum acceptable rate of return of 12%. Using the Present Value of an Annuity of $1 at Compound Interest table below, determine (1) the net present value of the project and (2) the present value index, rounded to two decimal places.
If required, use the minus sign to indicate negative numbers.
*** What is the Present value index(rounded to two decimal places) if the Net present value of the project is $36,610.00. The answer is not 0.85
Thank you
What is the present value of an ordinary 12 year annuity that pays $1000 per year when the interest rate is?
24
May
$7,942.70
$7,576.30
$7,500
$7,761.20
Present Value interest factor of annuity?
23
May
How do I calculate present value interest factor of annuity from this information.
The company plans to purchase a new piece of equipment (to be used over a six year period) for $320,000.
Assume the cash flows and depreciation (based upon the use of the 5-year MACRS Schedule and Table 12-9) for the new equipment is as follows:
Cash Flow Depreciation
1 $120,000 $64,000
2 105,000 102,400
3 80,000 61,440
4 65,000 36,800
5 53,000 36,800
6 45,000 18,560
The firm has a 36 percent tax rate. Assuming depreciation is the only expense and based upon the cost of capital of 10%
help deriving the following present value on an n period annuity immediate ?
10
May
E[ http://upload.wikimedia.org/math/8/d/f/8dfcea29072392b3f8042d15a753d727.png] = http://upload.wikimedia.org/math/8/d/f/8dfcea29072392b3f8042d15a753d727.png
i couldn’t write the symbols here so i had to use links t show you what i meant. for the left said the linked image should be everything except the i part that is there. so only the and n should be there. the right side is correct. please help me derive the formula if you’re not sure of anything just email me so i can clarify what i want help with.
how do i differentiate between normal annuity questions and present value of annuity questions in math? URGENT
09
May
i cant seem to get it….
1. logan retires in 4 years. he has plans to take a trip to australia. he estimates it will cost him $8000 for trip. how much money should he invest every six months if the investment earns 6% per annum compounded annualy?
2. A giant screen television set is on sale for $3400. it can be purchased on the installment plan for 3 years, each payment to be made at the end of each month. if interest is 10% compounded monthly , determine the regular monthly payment.
now 1st of all how do i differentiate which 1 is annuity and which 1 is PV annuity? cuz both r monthly payments….plz im so confused about this..i did good on my quiz but i frgot how to do this and i have an exam 2morrow…plez help help help!!! if u have a website for questions like these plz link em..plz plz plz!!!
What is the better path to wealth? Invest for the future or Invest for the present?
09
May
Invest in small companies that have potential or invest in big companies who are actually doing it big right now at the highest level?
Damn these are both great answers. Best answers I’ve had investing period. However, I can only pick one. I hate that part of it. LOL Anyway, whomever doesn’t get best answer don’t take it personal because your answer was exceptional as well. Both very great answers.
I need help with recognizing when to use either the PRESENT VALUE or FUTURE VALUE formula for annuities.?
06
May
I know the P-Value and F-Value formulas for both annuities due and original annuities.
I also know what values to plug into the given equation.
However, I have a hard time being able to discern when I should use either one of the two FUTURE VALUE or PRESENT VALUE equations.
Are there any tricks or tips that you finance experts might have for a finance student?
Thanks!
Present Value, Future Value, and Annuity Due?
01
May
Present Value, Future Value, and Annuity Due
3. You will receive $5,000 three years from now. The discount rate is 8 percent.
a. What is the value of your investment two years from now? Multiply $5,000 x .926 (one year’s discount rate at 8 percent).
b. What is the value of your investment one year from now? Multiply your answer to part a by .926 (one year’s discount rate at 8 percent).
c. What is the value of your investment today? Multiply your answer to part b by .926 (one year’s discount rate at 8 percent).
d. Confirm that your answer to part c is correct by going to Appendix B (present value of $1) for n = 3 and i = 8 percent. Multiply this tabular value by $5,000 and compare your answer to part c. There may be a slight difference due to rounding.
4. If you invest $9,000 today, how much will you have:
a. In 2 years at 9 percent?
b. In 7 years at 12 percent?
c. In 25 years at 14 percent?
d. In 25 years at 14 percent (compounded semiannually)?
5. Your uncle offers you a choice of $30,000 in 50 years or $95 today. If money is discounted at 12 percent, which should you choose?
present value of annuity?
20
Apr
jonah signed a loan contract that requires a down payment of $1500 and payments of $200 a month for 10 years. The interest rate is 9 % per annum, compounded monthly.
what’s the cash value of the contract
if jonah miss the first 8 payments, what must he pay at the time the ninth payment is due to bring himself up to date
if he missed the first 8 payments, what does he have to pay at the ninth payment to pay off the contract completely
gr 11 present value of annuity?
08
Apr
jonah signed a loan contract that requires a down payment of $1500 and payments of $200 a month for 10 years. The interest rate is 9 % per annum, compounded monthly.
what’s the cash value of the contract
if jonah miss the first 8 payments, what must he pay at the time the ninth payment is due to bring himself up to date
if he missed the first 8 payments, what does he have to pay at the ninth payment to pay off the contract completely
What is the present value and payment on these accounts?
04
Apr
What is the present value of an ordinary annuity that has $230 monthly payments for 12 years if the account receives 8 3/4 % interest.
present value = $
What are the payment(s) on this account? Find the monthly payments for an ordinary annuity that will yield a future value of $500000 at 6 1/4% interest for 29 years.
payment = $
How do you calculate the present value of an annuity when the payments do no start until four years from now?
04
Apr
I can only find formulas for annuities that either begin within one year or for annuities due that start immediately. How does the time gap affect the formula?