what is the present value of a perpetuity of $2500 per year given an interest rate of 8.25% p.a?

89,649 results

  1. finance

    what is the present value of a perpetuity of $2500 per year given an interest rate of 8.25% p.a? (assume the first cash is four years from today)
  2. MATH

    Find the value of single perpetuity payment if the present value of the perpetuity payments at t=0 years is AED 500,000 and the interest rate is R% compound per year.[Choose R% from 8% to 12%]
  3. maths-- compound interest

    find the compund interest on $2500 for one year at 4% per annum compounded half-yearly. which of these is correct? $2500(1 + 0.04)^2 or $2500(1 + 0.02)^2 The second one. 2500(1+.02)^2 Since the interest is compounded semi-annually you have to divide the annual rate of 4% by 2...
  4. math

    if a loan is given for 2,500 for 1 year and the interest charged is 275 dollars what is the interest rate on the loan? how do I go about solving this do I subtract the 275 from 2500. Interest=Principal*Rate*Time 275=2500(rate)(1) rate=275/2500 =.11 so the "simple" interest ...
  5. economics

    Jerry will receive the following payments: 946 in year 3, 929 in year 5 and 958 in year 9. What is the purchasing power of the present value of these payments if the market interest rate is 17% per year and the inflation rate is 6% per year?
  6. present value

    An investment pays you $20,000 at the end of this year, and $10,000 at the end of each of the four following years. What is the present value (PV) of this investment, given that the interest rate is 4% per year?
  7. math

    find the present value of ordinary annuity payments of 890 each year for 16 years at 8% compounded annually What is the amount that must be paid (Present Value) for an annuity with a periodic payment of R dollars to be made at the end of each year for N years, at an interest ...
  8. FINANCE

    A perpetuity with the first annual cash flow paid at the beginning of year 4 is equivalent to receiving $103,000 in 15 years’ time. Assume that the perpetuity and the lump sum are of equivalent risk and that j12 = 14.32% pa is the appropriate interest rate. How much is the ...
  9. college math

    Find the approximate (with an integral estimate) present and future values of a constant income stream of 2500 dollars per year over a period of 40 years, assume a 5 percent annual interest rate compounded continuously. Find current and future value?
  10. Precalculus Math

    If $2500 is invested at an interest rate of 2.5% per year, compouded daily, find the value of the inevestment after 2 years
  11. maths---integral

    the time index t runs from a to A. if an investment produced a continuous stream of income over 10 years at a rate of $20,000 per year and the interest rate is 6% per year continuously compounded. what is the present value? what is the integral function?
  12. Maths---integral

    the time index t runs from a to A. if an investment produced a continuous stream of income over 10 years at a rate of $20,000 per year and the interest rate is 6% per year continuously compounded. what is the present value? what is the integral function?
  13. Finance

    what is the present value of $2500 per year for 9 years discounted back to the present at 11 percent?
  14. Pre-Calculus

    What is the present value of a $1000 bond which pays $50 a year for 10 years, starting one year from now? Assume interest rate is 6% per year, compounded annually
  15. Calculus

    I keep getting confused on this stuff. Alan invests $2500 in a 5 year Government bond paying interest at 3.7% per annum compounded annually. Calculate the value of the bond at maturity (after 5 yrs) Tn = 2500(0.037)^5-1 = 2500(0.037)^4 = 2500(1.8741*10^-6) I know the third ...
  16. Calculus

    Suppose that the machinery in question costs $104000 and earns profit at a continuous rate of $69000 per year. Use an interest rate of 9% per year, compounded continuously. When is the present value of the profit equal to the cost of the machinery? Round your answer to the ...
  17. Math

    A basketball player received a contract from the New York Knicks in which he was offered $5 million a year for ten years. Determine the present value of the contract on the date of the first payment if the interest rate is 3 % per year, compounded continuously. Round your ...
  18. Math

    A basketball player received a contract from the New York Knicks in which he was offered $5 million a year for ten years. Determine the present value of the contract on the date of the first payment if the interest rate is 3 % per year, compounded continuously. Round your ...
  19. Economics

    The formula given was: (real rate of interest) = (nominal rate of interest) - (expected rate of inflation) A chartered bank offers a one-year loan at "3 points above prime." Prime is 4 per cent. a) What is the nominal interest rate? b)If expected inflation is 3 per cent for ...
  20. Calculus

    using the following information in place of that in the book. The machine earns the company revenue at a continuous rate of 50000 t + 35000 dollars per year during the first six months of operation, and at the continuous rate of $60000 per year after the first six months. The ...
  21. finance

    Given an interest rate of 7.2 percent per year, what is the value at Year 9 of a perpetual stream of $3,950 payments that begin at Year 19
  22. Economics

    Present value equivalent for geometrically increasing series when the first year base of 4,000 increasing at 4% per year to year 15 at an interest rate 17% compounded continuously? urgent Help please
  23. Calculus

    The machine earns the company revenue at a continuous rate of 62000 t + 38000 dollars per year during the first six months of operation, and at the continuous rate of $69000 per year after the first six months. The cost of the machine is $170000. The interest rate is 5% per ...
  24. Finance

    A wealthy donor endows a chaired professorship. If the interest rate is 8% how much must he set aside to provide the following end of year salary payment alternatives? a. $100,000 per yr for 20 yrs b. $100,000 per yr in perpetuity c. A perpetuity that pays $100,000 for the ...
  25. calculus

    the monthly payment that amortizes a loan of A dollars in t yr when the interest rate is r per year, compounded monthly, is given by P=f(A,r,t) = Ar/ 12[1-(1+ r/12)^-12t ] Find the monthly payment for a home mortgage of 300,000 that will be amortized over 30 yr with an ...
  26. Calculus

    A machine earns the company revenue at a continuous rate of 62000 t + 43000 dollars per year during the first six months of operation, and at the continuous rate of $74000 per year after the first six months. The cost of the machine is $155000. The interest rate is 5.5% per ...
  27. Engineering economy

    General Electric issued 1000 debenture bonds 3 years ago with a face value of $5000 each and a bond interest rate of 8% per year payable semiannually. The bonds have a maturity date of 20 years from the date they were issued. If the interest rate in the market place is 10% per...
  28. Finance

    what is the present value of $1,000 paid at the end of the next 100 years if the interest rate is 7% per year?
  29. Finance

    what is the present value of 1000 paid at the end of each of the next 100 years if the interest rate is 7% per year
  30. Fins nance business

    1. Find the future value of current $1,000 5 year from now when annual interest rate 8% is compounded annually 2. Find the present value of a future value (1,000) four years from now when annual interest rate 8% is compounded quarterly. 3.Find the present value of a four year...
  31. more logarithms help!

    the depreciated value, V, of a car can be calculated using V = C91-r)^n, where C is the original value, r is the rate of depreciation per yeat and n is the age of the car in years. how long would it take for a $24,000 car to be reduced to a value of $2500 if the car is ...
  32. corporate finance

    What is the present value of $1000 paid at the end of each of the next 100 years if interest rate is 7% per year?
  33. math

    Present Value suppose your bank account will be worth $7000 in one year. The interest rate (discount rate) that the bank pays is 8%. What is the present value of your bank account today? What would the present value of the account be if the discount rate is only 3%
  34. Finance

    First Inc. is facing a liquidity problem and needs to issue a perpetual bond that is callable only at the end of year 2. The call price is $1,000 (face value) plus an additional coupon payment. The current interest rate is 8% per year. At the end of each year, interest rate ...
  35. Math

    issan deposited 2500 into a savings account that pays 4.5% simple interest per year. How much interest does she earn per year? A-1225.00 B-472.50** C-157.50 D-4725.00 I think its C
  36. calculus

    The rate of change of an investment account earning continuous compound interest is given by dA/dt=kA where k is a positive constant. The initial account value was $2500. At the end of the third year, the account value was $4200. Find the particular solution to the ...
  37. calculus

    The rate of change of an investment account earning continuous compound interest is given by dA/dt=kA where k is a positive constant. The initial account value was $2500. At the end of the third year, the account value was $4200. Find the particular solution to the ...
  38. math 117

    Kevin earned $165 interest for 1 year on an investment of $1500. At the same rate, what amount of interest would be earned by an investment of $2500? At the same rate of interest, and period, the interest earned will be proprtional to the original principle. Therefore, you can...
  39. present annuity

    What is the present value of an annuity that consists of 28 monthly payments of $260 at an interest rate of 8% per year, compounded monthly? (Round your answer to the nearest cent).
  40. College Algebra

    Find the present value of $100,000 if interest is paid at a rate of 8% per year, compounded monthly, for 5 years.
  41. Financial Management

    HI, could anyone help with this please. :) 2. Find the following values: a) An intial $500 compounded for 10 years at 6 percent b) An intial $500 compounded for 10 years at 12 percent c) The present value of $500 due in 10 years at a 6 % discount rate. d) The present value of...
  42. Financial Management

    Hi, would anyone be willing to help with this. Thanks :) 2. Find the following values: a) An intial $500 compounded for 10 years at 6 percent b) An intial $500 compounded for 10 years at 12 percent c) The present value of $500 due in 10 years at a 6 % discount rate. d) The ...
  43. Calculus

    OK I understand the concept present value but I don't understand how to solve for present value in this context: Assume that you won a local contest for which you gain a continuous income stream at a rate R(t)=5000e^0.1t per year for 5 years and r=0.05. Find present value. Can...
  44. Finance

    If $12,000 is invested in a certain business at the start of the year, the investor will receive $3,600 at the end of the next four years. What is the present value of this business opportunity if the interest rate is 7% per year?
  45. Finance

    Jean will receive $8,500 per year for the next 15 years from her trust. If a 7% interest rate is applied, what is the current value of the future payments? Describe how you solved this problem, including which table (for example, present value and future value) was used and why.
  46. calculus

    Please help . confused here. The rate of change of an investment account earning continuous compound interest is given by dA/dt=kA where k is a positive constant. The initial account value was $2500. At the end of the third year, the account value was $4200. Find the ...
  47. fin 200 question

    Jean will receive $8,500 per year for the next 15 years from her trust. If a 7% interest rate is applied, what is the current value of the future payments? Describe how you solved this problem, including which table (for example, present value and future value) was used and ...
  48. math

    Inflation is running 2% per year when you deposit $1000 in an account earning interest of 13% per year compounded annually. In constant dollars, how much money will you have two years from now? (Hint: First calculate the value of your account in two years' time, and then find ...
  49. Help Please Math

    A principal of $2500 is invested,part at 8% per annum and the rest at 12% per annum. In a year, the 8% investment interest was doubled the 12% investment interest. How much invested at each rate? Express in the form Ax+By=C
  50. Calc

    Find the present value of $14000 due in 9 years at the given rate of interest. (a) 2%/year compounded semiannually? (b) 5%/year compounded semiannually?
  51. math

    Find the accumulated amount A, if the principal P is invested at an interest rate of r per year for t years. P = $2500, r = 3%, t = 3, compounded quarterly $ ?
  52. math

    Find the present value of $31,000 due in 4 yr at the given rate of interest. (a) 6%/year, compounded quarterly $ ? (b) 3%/year, compounded quarterly $ ?
  53. math

    Find the present value of $31,000 due in 4 yr at the given rate of interest. (a) 6%/year, compounded quarterly $ ? (b) 3%/year, compounded quarterly $ ?
  54. math

    Find the present value of $31,000 due in 4 yr at the given rate of interest. (a) 6%/year, compounded quarterly $ ? (b) 3%/year, compounded quarterly $ ?
  55. Finance301

    Suppose your bank account will be worth $15,000.00 in one year. The interest rate (Discounted Rate) that the bank pays is 7%. What is the present value of your bank account today? What would the present value of the account be if the discount rate is only 4%?
  56. Math

    (a) Find the present value of $ 4600 per year flowing uniformly over a 10 -year period if it earns 5.3 % interest compounded continuously. (b) What is its final value?
  57. Math

    Suppose that $2500 is invested at an interest rate of 2.5% per year, compounded continuously. After how many years will the initial investment be doubled?
  58. calculus

    First, the bond pays 96 + 7 t per year for 10 years. Second, the interest rate is 5.25% compounded continuously. Round your answer to the nearest cent. Find the present value?
  59. Finance

    Investment X offers to pay you $6,000 per year for nine years, whereas Investment Y offers to pay you $8,000 per year for six years. If the discount rate is 5 percent, Investment X has a present value of ? and Investment Y has a present value of ?. If the discount rate is 15 ...
  60. finance

    Use the following scenario to answer Discussion Question 2. Jean will receive $8,500 per year for the next 15 years from her trust. If a 7% interest rate is applied, what is the current value of the future payments? Describe how you solved this problem, including which table (...
  61. Algebra

    last year, justin had 30,000 to invest. he invested some of it in an account that paid 5% simple interest per year, and he invested the rest in an account that paid 10% simple interest per year. After one year, he recieved a total of $2500 in interest. How much did he invest ...
  62. present value

    The present value P that will amount to A dollars in n years with interest compounded annually at annual interest rate r, is given by P = A (1 + r) -^n. Find the present value that will amount to $50,000 in 20 years at 8% compounded annually.
  63. Finance

    Calculating Interest Rate. Find the interest rate implied by the following combinations of present and future values. PresentValue Years Future Value $400 11 $684 $183 4 $249 $300 7 $300 Since you do not state otherwise, I am assuming that your interest rate is compounded ...
  64. calculating annuity

    IF a company will generate 80,000 in annual revenue each year for the next eight years and the interest rate is 8.2% what is the present value of the savings? An EXCEL spreadsheet will be helpful for these types of calculations. Let S1 be savings in year 1, S2 in year 2, and ...
  65. Finance

    Suppose your bank account will be worth $15,000.00 in one year. The interest rate (discount rate) that the bank pays is 7%. What is the present value of your bank account today? What would the present value of the account be if the discount rate is only 4%?
  66. Finance

    EMAR expects to receive $2,000 per year for 10 years and $3,500 per year for the next 10 years. What is the present value of this 20-year cash flow? Use an 7% discount rate.
  67. Math

    Deborah deposits $200 into an account that pays simple interest at the rate of 7%. How much will she have at the end of 4 months? a) Present Value with simple interest b) Future Value with simple interest c) Future Value with compound interest d) Simple Interest e) Effective Rate
  68. Capital Investment and Financing Decisions.

    1)Find the present value of Rs. 2,000 due in 6 years if money is worth compounded semi-annually. (b) Ascertain the present value of an amount of Rs. 8,000 deposited now in a commercial bank for a period of 6 years at 12% rate of interest. 2)You are required to determine the ...
  69. Finance

    Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,500 per year for the next 10 years. What is the present value of this 20 year cash flow. Use a 11% discount rate.
  70. fin

    What's the rate of return you would earn if you paid $4,000 for a perpetuity that pays $75 per year?
  71. finance

    Q.1.Differentiate future value from present value and explain how compound interest differs from simple interest. Q.2. John expects to need $50,000 as a down payment on a house in six years. How much does she need to invest today in an account paying 7.25 percent? Q.3. Richard...
  72. Present Value Math

    Find the present value of an ordinary annuity of $500 payments each made quarterly over 6 years and earning interest at 8% per year compounded quarterly. ​ $9,456.96 $2,311.44 $24,968.07 $5,264.38 Thank you
  73. Math

    Ms. Jordan has been given a loan of 2500 for 1 year. If the interst charged is $275, what is the interest rate on the loan?
  74. Mathematics

    In the problems 1 to 3, find the present value of the given (ordinary) annuity. 1. $3500000 every 6 months for 5 years at the rate of 16% compounded semi-annually. 2. $7000000 per month for 10 months at the rate of18% compounded monthly. 3. $1700000 per year for 5 years at the...
  75. Finance

    22.A lottery winner was given a perpetual payment of $11, 444. She could invest the cash flows at 7 percent. What is the present value of this perpetuity?
  76. MATH

    The value V of a machine t years after it is purchased is inversely proportional to the square root of t+2. The initial value of the machine is $10,000. Find the rate of depreciation when t=5 . Round your answer to two decimal places. A. -381.80 PER YEAR B. -1889.82 PER YEAR C...
  77. management accounting

    how much should be invested now (to the nearest $)to receive $ 24000 per annum in perpetuity if the annual rate of interest is 5% ?
  78. math

    Please help: A continuously compounded account starts with $2500 in principal. The annual interest rate is 11.3%. What is the balance after 15 years? pert: Value= Principal*ert = 2500* e0.11(15) = 2500 * e1.65 wow. thanks
  79. marketing

    QUESTION #1 cost analysis with graph office copier has an initial price of $2500. A service contract costs $200 for the first year and increases $50 per year thereafter. It can be shown that the total cost of the copier after n years is given by C(n)= 2500 +175n +25n^2. The ...
  80. Math

    Bond : Face Value = 100,000 State Rate = 9% Semi-annual Payments Term = 3years Market Rate of 12% Amortize the bond to determine: Year 1 Interest Expense End of Year 1 carrying value. My Answers: Year 1 Interest Expense = 5,621.05 End of Year 1 carrying value =94,805.14 Am I ...
  81. math

    find the interest rate to the nearest hundredth of a percent that will produce $2500, if $2000 is left at interest compounded semiannually for 4.5 year
  82. math

    Michael has a total of $2000 on deposit with two saving institutions. One pays interest at the rate of 6% per year whereas the other pays interest at a rate of 8% per year. If Michael earned a total of $144 in interest during a single year, how much did he deposit in each ...
  83. Math

    John invested $2500, part at 8% and the rest at 12% per annum. The two parts earned equal amount of interest in one year. How much was invested at each rate?
  84. Algebra 1

    1.the number of bacteria present in a colony is 180 at 12 noon and the bacteria grows at a rate of 22% per hour. how many will be present at 8pm? 2.A 1970 comic book has appreciated 10% per year and originally sold for $0.35. What will it be worth on 2010? 3.The cost of a high...
  85. accounting

    Selling price of a bond: Problem type 1 On December 31, 2008, $140,000 of 9% bonds were issued. The market interest rate at the time issuance was 11%. The bonds pay on June 30 and December 31 and mature in 10 years. Compute the selling price of a single $1,000 bond on December...
  86. Algebra

    Phyllis invested 67000 dollars, split between two different accounts. The money in the first account earns simple interest at the rate of 4 percent per year. The money in the second account earns simple interest at the rate of 6 percent per year. After one year the total ...
  87. Alg2

    Zeus Industries bought a computer for $2500. It is expected to depreciate at a rate of 20% per year. What will the value of the computer be in 2 years?
  88. math

    Find the present value of $53705.69 due in 5 yr at an interest rate of 8%/year compounded continuously. $ ?
  89. math

    Find the present value of $26997.18 due in 3 yr at an interest rate of 10%/year compounded continuously. $?
  90. math

    Find the present value of $26997.18 due in 3 yr at an interest rate of 10%/year compounded continuously. $?
  91. math

    Find the present value of $26997.18 due in 3 yr at an interest rate of 10%/year compounded continuously. $ ?
  92. Business Math 205

    Calculate the PRESENT VALUE of the following ORDINARY ANNUITIES. Round to the nearest cent when necessary. Annuity Payment:($3,000) Payment Frequency: (Every Year) Time Period YRS:(15)Nominal Rate%:(10)Interest Compounded:(Annually)Present Value Of The Annuity is What?
  93. Finance

    The present value of $1,000 to be received in 1 year with annual compounding at a 10% per year rate, would be: $900.00. $909.09. $990.90. $1,100.
  94. math,correction

    Problem #5 Business and finance. Kevin earned $165 interest for 1 year on an investment of $1500. At the same rate, what amount of interest would be earned by an investment of $2500? My answer is: The amount of interest would be $275 earned by an investment of $2500. Problem #...
  95. Business Math

    Solve the following by using the present value formula. Compound Amount- $675 Term of Investment-15 months Nominal Rate (%)- 2.7 Interest Compounded quarterly Present Value ___________? Compound Interest _________?
  96. SNHU

    1. What is the market interest rate on XYZ’s debt and its component cost of debt? Coupon rate 12% Coupons per year 2 Years to maturity 15 Price $1,153.72 Face value $1,000 Tax rate 40% Market Interest Rate = Cost of Debt =
  97. Finance math

    Consider the project with the following expected cash flows: Year Cash flow 0 -$400,000 1 $100,000 2 $120,000 3 $850,000 •If the discount rate is 0%, what is the project's net present value? •If the discount rate is 2%, what is the project's net present value? •If the ...
  98. financial analysis

    Coupon rate 12% Coupons per year 2 years to maturity 15 Price $1,153.72 Face Value $1,000.0 Tax Rate 40% how do you calculate the market interest rate
  99. Calculus

    Camille purchased a 10-yr franchise for a computer outlet store that is expected to generate income at the following rate measured in dollars/year. R(t) = 400,000 If the prevailing interest rate is 10%/year compounded continuously, find the present value of the franchise. (...
  100. finance

    You won a lottery which pays $10,000 per year for 10 years (at the end of each year). Assuming a discount rate of 8% calculate the present value of your expected winnings.
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