Question

What is the present value of $15,000 to be received in 6 years if you earn...

What is the present value of $15,000 to be received in 6 years if you earn 8 percent compounded quarterly?Please provide step-by-step instructions for solving the problem

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The amount to be received in 6 years = $15,000

Calculating the Present Value of amount to be receive in 6 years using the following formula:-

Where, Future Value = $15,000

r = Interest rate = 8%

n= no of periods = 6 years

m = no of times compounding in a year = 4 ( as quarterly compounding)

Present Value = $9,325.82

So, the present value of $15,000 to be received in 6 years is $ 9,325.82

If you need any clarification, you can ask in comments.     

If you like my answer, then please up-vote as it will be motivating

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
What is the future value of $10,000 invested for 5 years at 6 percent compounded semi-annually?Please...
What is the future value of $10,000 invested for 5 years at 6 percent compounded semi-annually?Please provide step-by-step instructions for solving the problem $13,439.16 $10,000.00 $13,382.26 $13,192.87
1) Calculate the present value of $5,000 received five years from today if your investments pay...
1) Calculate the present value of $5,000 received five years from today if your investments pay 6 percent compounded annually 8 percent compounded annually 10 percent compounded annually 10 percent compounded semiannually 10 percent compounded quarterly What do your answers to these questions tell you about the relation between present values and interest rates and between present values and the number of compounding periods per year?
Calculate the present value of $7,000 received four years from today if your investments pay (Do...
Calculate the present value of $7,000 received four years from today if your investments pay (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Present Value a. 6 percent compounded annually b. 8 percent compounded annually c. 10 percent compounded annually d. 10 percent compounded semiannually e. 10 percent compounded quarterly
7 Determine the present value if $15,000 is to be received at the end of eight...
7 Determine the present value 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?
Calculate the future value in five years of $5,000 received today if your investments pay 6...
Calculate the future value in five years of $5,000 received today if your investments pay 6 percent compounded annually 8 percent compounded annually 4 percent compounded annually 4 percent compounded semiannually 4 percent compounded quarterly
If you put $1,000 into a bank account that earns an interest rate of 4 percent...
If you put $1,000 into a bank account that earns an interest rate of 4 percent compounded annually, what will be the account balance at the end of 5 years?Please provide step-by-step instructions for solving the problem
Calculate the present value of the following annuity streams: a. $4,000 received each year for 5...
Calculate the present value of the following annuity streams: a. $4,000 received each year for 5 years on the last day of each year if your investments pay 8 percent compounded annually. b. $4,000 received each quarter for 5 years on the last day of each quarter if your investments pay 8 percent compounded quarterly. c. $4,000 received each year for 5 years on the first day of each year if your investments pay 8 percent compounded annually. d. $4,000...
You have just arranged for a $200,000 mortgage to finance the purchase of a house. The...
You have just arranged for a $200,000 mortgage to finance the purchase of a house. The mortgage has an 8 percent quoted rate, interest is compounded semi-annually and it calls for monthly payments for the next 20 years. What is the monthly payment?Please provide step-by-step instructions for solving the problem
What is the future value of $10,000 in 8 years at 8%, compounded quarterly? What is...
What is the future value of $10,000 in 8 years at 8%, compounded quarterly? What is the present value of $15,500 received in 10 years if interest of 1% is compounded monthly? What is the present value of $22,000 received in 5 years if interest of 1% is compounded quarterly?
Calculate the present value of $5,000 received four years from today if your investments pay (Do...
Calculate the present value of $5,000 received four years from today if your investments pay (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))            Present Value a. 7 percent compounded annually $ b. 9 percent compounded annually $ c. 11 percent compounded annually $ d. 11 percent compounded semiannually $ e. 11 percent compounded quarterly $
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT