The process of finding the present value of some future amount is called: a. complexing. b. discounting. c. valuing. d. reducing. e. compounding. | Homework.Study.com (2024)

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• The process of finding the present value of some future amount is often called: a. compounding b. reducing c. valuing d. discounting e. complexing
• Determining the present value of one or more future amounts is known as ________. A. inverting B. discounting C. compounding D. annuitizing
• Discounting calculates the __________ value of an amount to be received. a) present b) future c) book d) compounded
• The use of future value to calculate the present value is called: Select one: a. compounding b. the annuity method c. discounting d. present value approach
• As the compounding rate becomes lower and lower, the future value of inflows approaches: a. the present value of the inflows.
• Increasing the number of periods will increase all of the following except: a. the present value of an annuity b. the present value of $1 c. the future value of $1 d. the future value of an annuity
• The amount of the promissory note plus the interest earned on the due date is called the: a. realizable value b. maturity value c. face value d. net realizable value
• Determine the future value of the following single amounts: Invested Amounti =n =Future Value 1.$10,0004%10 2.$12,0009%8 3.$25,0009%18 4.$45,0005%8
• Calculate the future value given the following information: present value 500, number of periods 4 and interest rate 5%.
• Determine the future value of $22,000 under each of the following sets of assumptions. AnnualPeriod InvestedInterest Compoundedi=n=Present ValueFuture Value 1.12%10 yearsSemiannually$22,0
• The process of accumulating interest in an investment over time to earn more interest in called: a. discounting. b. compounding. c. complexing. d. multiplying. e. indexing.
• Determine the future value of the following single amounts: Invested Amount: Interest Rate: No. of Periods: Future Value: 1. $12,000 8% 16 2. 16,000 5% 15 3. 29,000 8% 12 4. 49,000 4% 7 Show all calculations.
• Find the interest rate implied by the following combinations of present and future values: Sr. No. Present ValueYears Future Value a $400 11 $684 b $183 4 $249 c $300 7 $300
• Finding the discounted current value of $1,000 to be received at the end of each of the next 5 years requires calculating the: a. future value of an annuity. b. future value of an annuity due. c. present value of an annuity. d. present value of an annuity
• Calculate the present value given that the future value is $800, the number of periods is 5, and the interest rate is 10%.
• In determining the future value of a single amount, one measures: A. the future value of periodic payments at a given interest rate. B. the present value of an amount discounted at a given interest rate. C. the future value of an amount allowed to grow at
• As the compounding rate becomes lower and lower, the future value of inflows approaches: a. zero b. infinity c. the present value of the inflows d. more information is needed
• Calculate the present value given that the future value is $2,500, the number of periods is 2, and the interest rate is 15%.
• Calculate the present value given that the future value is $1,000, the number of periods is 3, and the interest rate is 5%.
• If the number of periods is known, the interest rate is determined by: a. dividing the future value by the present value and looking for the quotient in the future value of 1 table b. dividing the future value by the present value and looking for the quot
• Determine the future value of the following single amounts. Sr. No. Invested Amount Interest Rate No. of Years Future Value 1 $13,500 6% 16 2 $19,000 9% 9 3 $32,000 10% 14 4 $53,000 4% 10
• Determine the future value of the following single amounts. Sr. No. Invested amount Interest rate No. of years Future Value 1 $15,000 6% 12 2 $20,000 8% 10 3 $30,000 12% 20 4 $50,000 4% 12
• Calculate the present value given the following information: future value = $1,000; number of periods = 3; interest rate of 5%. Show every step to solve this problem.
• Increasing the number of periods will increase all of the following except: a. the present value of $1. b. the future value of an annuity.
• Calculate the future value of the following single amounts: 1. Invested Amount = $12,000, i = 8%, n = 16. 2. Invested Amount = $16,000, i = 5%, n = 15. 3. Invested Amount = $29,000, i = 11%, n = 12. 4. Invested Amount = $49,000, i = 4%, n = 7.
• Calculate the future value given the following information: present value= $2,500; number of periods= 4; interest rate of 5%.
• Compute the future value for the following given information: present value of $8,400 for 12 years at 8% interest rate.
• Compute the future value for the following given information: present value of $181,300 for 6 years at 3% interest rate.
• Compute the future value for the following given information: present value of $2,450 for 19 years at 13% interest rate.
• Compute the future value for the following given information: present value of $73,700 for 3 years at 19% interest rate.
• Compute the future value of the following deposit made today: $10,000 at 6.75% compounding monthly for 10 years. Also, compute the interests earned on the deposit above.
• Compute the future value of the following deposit made today: $10,000 at 6.75% compounding annually for 10 years. Also, compute the interests earned on the deposit above.
• Calculate the present value given the following information: Future Value$2500 Number of Periods2 Interest Rate of15%
• The bond issue price is determined by calculating the: a. present value of the stream of interest payments and the future value of the maturity amount. b. future value of the stream of interest payments and the future value of the maturity amount. c fu
• Calculate the future value: Present Value - $2,500 Years - 12 Interest Rate -12%
• Calculate the future value: Present Value - 81,355 Years - 13 Interest Rate - 11%
• Calculate the future value: Present Value - 188,796 Years - 7 Interest Rate - 7%
• Calculate the future value: Present Value - 9,252 Years - 6 Interest Rate - 10%
• Provide the value for each component N= , I=, PV=, FV=, etc Annuity payment for expected Future Value 6. You wish to retire with $5 Million in 38 years. You estimate you will earn 8% annually on you
• Calculate the present value given the following information: Future value = $800; number of periods = 5; interest rate of 10%.
• Calculate the present value given the following information: Future value = $500; number of periods = 4; interest rate of 5%.
• Calculate the present value given the following information: Future value: $1,000 Number of periods: 3; Interest rate: 5%.
• Calculate the present value given the following information: Future value = $2,500; number of periods = 2; interest rate of 15%.
• Calculate the present value given the following information: Future value = $1800; number of periods = 5; interest rate of 10%.
• Calculate the present value given the following information: future value = $1,000; number of periods = 3; interest rate of 5%.
• Calculate the present value: Future Value - 52,557 Years - 5 Interest Rate - 14%
• Calculate the present value: Future Value - $15,551 Years - 14 Interest Rate - 8%
• Calculate the present value: Future Value - 551,164 Years - 35 Interest Rate - 8%
• Calculate the present value: Future Value - 887,073 Years - 30 Interest Rate - 15%
• Calculate the Interest Rate. Present Value - $200 Years - 3 Future Value - $232
• Calculate the Interest Rate. Present Value - 34,261 Years - 20 Future Value - 261,665
• Calculate the Interest Rate. Present Value - 320 Years - 17 Future Value - 847
• Calculate the Interest Rate. Present Value - 35,000 Years - 18 Future Value - 143,410
• The ______ calculates the discount rate at which an investment's present value of all expected cash inflows equals the present value of its expected cash outflows.
• Compute the future value in year 9 of a $2,000 deposit in year 1 and another $1,500 deposit at the end of year 3 using a 10 percent interest rate. 2. What is the future value of a $900 annuity pay
• Compute the present value for the following given information: future value of $12,300 for 5 years at 3% interest rate.
• Compute the present value for the following given information: future value of $887,000 for 22 years at 16% interest rate.
• Compute the present value for the following given information: future value of $48,200 for 8 years at 7% interest rate.
• Find the following values for a lump sum assuming annual compounding: a. The future value of $1,500 invested at 7% for one year. b. The future value of $1,500 invested at 7% for five years. c. The present value of $1,500 is to be received in one year when
• Find the following values for a lump sum assuming annual compounding: a. The future value of $600 invested at 8 percent for one year. b. The future value of $600 invested at 8 percent for five years. c. The present value of $600 to be received in one y
• Find the following values for a lump sum assuming annual compounding: The future value of $500 invested at 8 percent for 1 year. The future value of $500 invested at 8 percent for 5 years. The present
• Future value is determined using: a. Worth of a dollar today b. Calculations only on the original principle c. A compound interest method d. Using a simple interest method
• Find the following values for a lump sum assuming annual compounding: a. The future value of $7,500 invested at 4.52 percent for one year. b. The future value of $7,500 invested at 4.52 percent for five years. c. The present value of $8,700 to be received
• Represents the number of periods for annuity or amount to reach future value. a) RATE b) FV c) PMT d) NPER
• Find the following values for a lump sum assuming annual compounding: a. The future value of $500 invested at 8 percent for one year. b. The future value of $500 invested at 8 percent for five years
• Calculate the Future value given the following information: Present value = $500 Number of periods = 4 Interest rate of = 5%
• Determine the future value of $10,000 under each of the following sets of assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1), Find i and n. 10% ; 10yrs semiannually ; i=
• (a) What is the future value of $7,000 at the end of 5 years at 8% compound interest? (b) What is the present value of $7,000 due 8 years hence, discounted at 11%? (c) What is the present value of $
• Calculate the future value FV of an investment of $10,000 at the stated interest rate after the stated amount of time. 7.5% per year, compounded daily (assume 365 days/year), after 12 years
• Martha is investing $5 today at 6 percent interest so she can have $10 later. The $10 is referred to as the : - true value - future value - present value - discounted value - complex value
• Present valueYearsInterest rateFuture value 13716,351 41360,557 2914895,073 409559,164 For each of the following calculate the present value.
• _______ is the valuation calculating the present value of a future cash flow to determine its value today. A. Single-period B. DCF valuation C. Compound interest D. Interest on interest valuation
• (a) what is the present (year 0) value if the opportunity cost (discount) rate is 10%? (b) add on outflow (or cost) of $1000 at year 0. What is the present value (or net present value) of the stream?
• Calculate the future value given the following information; Present value = $500 Number of periods = 4 Interest rate = 5 percent
• A stream of equal cash payments made at equal time intervals is called an: A) future value. B) compound interest. C) annuity. D) present value
• To estimate the intrinsic values of an equity or debt security using present value theory, you need to know: a. the yield to maturity. b. a discount rate and the expected payoffs over the life of the security. c. the probability of the expected future pay
• The higher the rate of interest: a. the larger the present value of a future sum of money b. the smaller the future value of an amount invested today c. the smaller the present value of a future sum of money d. All of the above.
• The relationship between a future value and its corresponding present value is determined by two variables. What are those two variables? A. Conversion rate; the number of compounding periods. B. Discount rate; length of compounding periods. C. Conversio
• In calculating the present value of $1,000 to be received 5 years from today, the discount factor has been calculated to be .7008. What is the apparent interest rate?
• Calculate the present value of a $1,300 discount bond with 7 years to maturity if the yield to maturity is 5%.
• Solve for the unknown number of years. Present Value - $21,200 Interest Rate - 14% Future Value - $338,250
• Solve for the unknown number of years. Present Value - $780 Interest Rate - 12% Future Value - $1,975
• Solve for the unknown number of years. Present Value - $18,100 Interest Rate - 18% Future Value - $341,892
• Calculate the future value of the following annuities, assuming each annuity payment is made at the end of each compounding period. Sr. No. Annuity Payment Annual Rate Interest Compounded Period Invested Future Value of Annuity 1 $3,000 7% Annually 6 year
• What is the future value of a $250 annuity at the end of the next 5 years if the annual compounding rate is 10%?
• Determine the future value of $27,000 under each of the following sets of assumptions: Annual Rate Period Invested Interest Compounded Future Value 1. 12% 6 years Semiannually 2. 20% 3 years Quarterly 3. 24% 30 months Monthly
• Determine the future value of $11,000 under each of the following sets of assumptions: Annual RatePeriod InvestedInterest CompoundedFuture Value 1.8%8 yearsSemiannually$ 2.125 yearsQuarterly$ 3.1240 monthsMonthly$
• Discounting a future cash inflow at an 8% discount rate will result in a higher present value than discounting it at a: a) 7% rate. b) 8% rate. c) 9% rate. d) All of these.
• If the future value of an annuity due is $25,000 and $24,000 is the future value of an ordinary annuity that is otherwise similar to the annuity rate, what is the implied discount rate?
• Compute the present value of an $850 payment made in 10 years when the discount rate is 12%. Recalculate the present value using an 11% discount rate and again using a 13% discount rate.
• To calculate the market value of a bond, we need to: a. find out the present value of all of the future cash payments promised by the bond b. calculate the present value of the principal only c. calculate the present value of the interest only d. multiply
• Calculate the present value given the following information: Future value = $2,500 Number of periods = 2 Interest rate = 15 percent
• Calculate the present value given the following information: Future value = $1,000 Number of periods = 3 Interest rate = 5 percent
• Calculate the present value given the following information: Future value = $800 Number of periods = 5 Interest rate = 10 percent.
• What is the present value of a future cost of $1000 in 10 years, if the discount rate is 15% per year?
• Solve for the unknown number of years. Present Value - $530 Interest Rate - 7% Future Value - $1,166
• Short-term non-interest-bearing notes receivable are usually recorded at their: a. present value b. net realizable value c. principal value d. maturity value
• Calculate the present value of a deferred compensation payment of $25,000 to be made in 3 years, assuming a 12% annual interest rate, compounded semiannually.
• A $1,000-face-value bond has a current market price of $935, an 8 percent coupon rate, and 10 years remaining until maturity. Interest payments are made semiannually. Before you do any calculations, decide whether the yield to maturity is above or below t
• Solve for the unknown number of years for the given information: present value of $840, interest rate of 7% and future value of $3,251.