Question

An investment will pay you $75,000 in 9 years. If the appropriate discount rate is 6%...

An investment will pay you $75,000 in 9 years. If the appropriate discount rate is 6% compounded daily, what is the present value? Please walk me through the steps on how to do this on a Texas Instruments BAII Plus calculator.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Present Value = Future Value x Present Value of future Value of $ 1
= $       75,000 x 0.583509
= $       43,763
Working:
Present Value of future Value of $ 1 = (1+i)^-n Where,
= (1+0.000164)^-3285 i 6%/365 = 0.000164
= 0.583509 n 9*365 = 3285
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
An investment will pay you $23,000 in 9 years. The appropriate discount rate is 9 percent...
An investment will pay you $23,000 in 9 years. The appropriate discount rate is 9 percent compounded daily. Required: What is the present value?
An investment will pay you $67797 in 9 years. If the appropriate discount rate is 13...
An investment will pay you $67797 in 9 years. If the appropriate discount rate is 13 percent compounded daily, what is the present value? (Use 365 days a year. Round time value factors to 6 decimal places and final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456 should be entered as 123456.)
a. An investment will pay you $17,000 in 8 years. The appropriate discount rate is 10...
a. An investment will pay you $17,000 in 8 years. The appropriate discount rate is 10 percent compounded daily. Required: What is the present value? b. You are planning to make monthly deposits of $60 into a retirement account that pays 9 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 16 years? c. You are planning to save for retirement over the next 25 years....
Can someone please teach me how to do these? 6. A risk-free bond will pay you...
Can someone please teach me how to do these? 6. A risk-free bond will pay you $1,000 in 1 year. The annual discount rate is i=19.69% compounded annually.  What is the bond’s present value? 7. A risk-free bond will pay you $1,000 in 2 years and nothing in between. The annual discount rate is i=67.5% compounded annually.  What is the bond’s present value?
Don Draper has signed a contract that will pay him $75,000 at the end of each...
Don Draper has signed a contract that will pay him $75,000 at the end of each year for the next 6 ​years, plus an additional $120,000 at the end of year 6. If 8 percent is the appropriate discount​ rate, what is the present value of this​ contract? a. The present value of the contract is ​$____(round to the nearest cent)
Calculate the NPV of a project under consideration with the following information: project life = 5...
Calculate the NPV of a project under consideration with the following information: project life = 5 years; project cost = $1,500,000; unit sales = 25,000; unit price = $200; unit variable cost = $170; fixed costs = $250,000; tax rate = 34%; rate of return = 12%. Please show the steps on how to do this with Texas Instruments BAII Plus calculator
A security pays $800 every 9 years forever. The appropriate discount rate is 6% (EAR). WARNING:...
A security pays $800 every 9 years forever. The appropriate discount rate is 6% (EAR). WARNING: This problem can't be solved just by plugging numbers into your calculator. The cash flows aren't annual, and the first one doesn't necessarily occur one period from now! You have to map it out! What is the value of the security if the first payment occurs 5 years from now?
1. You are offered an investment that will pay $100 annually for 7 years (the first...
1. You are offered an investment that will pay $100 annually for 7 years (the first payment will be made at the end of year 1) plus $2,900 at the end of year 7. If the appropriate discount rate is 5%, assume annual compounding, what is the investment worth to you today? 2. You are offered an investment that will pay $100 annually for 7 years (the first payment will be made at the end of year 1) plus $2,900...
nvestment X offers to pay you $4,200 per year for seven years, whereas Investment Y offers...
nvestment X offers to pay you $4,200 per year for seven years, whereas Investment Y offers to pay you $6,300 per year for four years. (Use a Financial calculator to arrive at the answers. Round "PV Factor" to 3 decimal places. Round the final answers to 2 decimal places.)    Calculate the present value for Investment X and Y if the discount rate is 6 percent. X Y Calculate the present value for Investment X and Y if the discount...
Investment X offers to pay you $5,400 per year for nine years, whereas Investment Y offers...
Investment X offers to pay you $5,400 per year for nine years, whereas Investment Y offers to pay you $7,700 per year for five years.    Calculate the present value for Investments X and Y if the discount rate is 6 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present value   Investment X $      Investment Y $    Calculate the present value for Investments X and Y if the discount rate is 16...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT