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

38,413 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
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
5. 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
6. 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
7. 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
8. 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
9. 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)
10. 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
11. 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
12. 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?
13. 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
14. 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
15. 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?
16. Mortgage Class

A borrower received a 30-year ARM mortgage loan for \$120,000. The start rate was 3.50% and the loan adjusts every 12 months for the life of the mortgage. Rate caps are 3/2/6. The index used for this mortgage is the LIBOR. For this exercise, let’s say it
17. 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
18. economics

Nair Inc. bought a "growing perpetuity" bond. The bond will pay 631.85 dollars at the end of year 1 and the payment will increase by 2.5 percent each year forever thereafter. Assuming the interest rate is 11.26% (forever), what is the maximum amount that

Susan would like to set up an endowment fund which would award a student with a scholarship of \$500 at the end of each year. The scholarship will continue in perpetuity. The interest rate is 6% compounded semi-annually, and the first award is made one year
20. Math

Stacey buys a \$1000 RRSP today. After one year she adds \$2500. By the end of the second year, the money has grown to \$3851 as it has earned interest over time. What rate of interest does the money earn? 1000x^2 + 2500x - 3851 Use the quadratic formula
21. 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
22. Loans

A borrower received a 30-year ARM mortgage loan for \$120,000. Rate caps are 3/2/6 (first adjustment/subsequent adjustments/total over the life of the loan). The start rate was 3.50% and the loan adjusts every 12 months for the life of the mortgage. The
23. 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
24. 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
25. 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 \$ ?
26. 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?
27. math review question

The interest rate on an equity line of credit was 6 3/4 % last year. This year the interest rate is 9 1/2 %. How many percentage points has the interest rate increased?
28. 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
29. Finance

what is the present value of \$2500 per year for 9 years discounted back to the present at 11 percent?
30. FINANCE

7. Forecasting interest rates Assume the current interest rate on a one-year Treasury bond (1R1) is 5.50 percent, the current rate on a two-year Treasury bond (1R2) is 5.95 percent, and the current rate on a three-year Treasury bond (1R3) is 8.50 percent.
31. FINANCE

5. Forecasting Interest Rates Assume the current interest rate on a one-year Treasury bond (1R1) is 5.00 percent, the current rate on a two-year Treasury bond (1R2) is 5.75 percent, and the current rate on a three-year Treasury bond (1R3) is 6.25 percent.
32. 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
33. 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?
34. 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?
35. 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% ?
36. math

If the interest on a sum is compounded quarterly, which of the following is necessarily true? a) The effective rate of interest is same for every year. b) The ratio of interest for the (m + 1) th year to m th year will be same as the ratio of interest for
37. college algebra

John invests \$2500 in an account that pays a rate r compounded annually. If after 2 years the total interest earned is \$650, find the approximate rate of interest
38. 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?
39. 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
40. 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
41. 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
42. 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
43. math

If you invest \$2500 for one year, part at 8% and part at 12%.....how much was invested at each percentage rate if they both earned the same amount of interest?
44. 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
45. 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
46. fin

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

The 1-year interest rate on Swiss francs is 5 percent and the dollar interest rate is 8 percent. (A) if the current \$/SF spot rate is \$0.60, what would you expect the spot rate to be in 1 year. (B) Suppose US policy changes and leads to an expected future
48. 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
49. 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
50. 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
51. MATH

a borrower received a 30 year ARM mortgage loan for 200,000. Rate caps are 3/2/6 the start rate is 3.50% AND the loan adjusts every 12 months for the life of the mortgage, The index used for this mortgage is LIBOR which for this exercise is 3% at the start
52. 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
53. 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?
54. Math

The interest rate on a second mortgage was % last year. This year the interest rate is %. How many percentage points has the interest rate increased?
55. 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
56. 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
57. Finance

Determine how much you would be willing to pay for a bond that pays \$60 annual interest indefinitely and never matures (i.e., a perpetuity), assuming you require an 8% rate of return on this investment.
58. 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
59. FIN200- FV, PV and Annuity Due CP

I just want to know if anyone can help me in determining if I am on track with this assignment and if anyone can point out where I am wrong and how I need to fix it. I have already completed this assignment on my own and need someone to review it. Thank
60. pre-algebra

how long will it take to earn \$568.75 in interest if \$2500 is invested at a 6.5% annual interest rate
61. 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
62. 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
63. BUS 401

Which of the following statments regarding the cost of preferred stock is true? a.It is typically found by solving for an annuity’s discount rate. b. It is tpically found by solving for an annuity's due's discount rate. C. It is found similarly to a
64. 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
65. Trig/Pre-Calc

\$2500 is invested in an account at interest rate r, compounded continuously. Find the time required for the amount to (a) double and (b) triple. r=0.085 I know you use the formula A=Pe^rt and you would start by setting it up as follows:
66. math/compound

Calculate the interest earned on an investment of 2500 invested at an interest rate of 6.15%/a compounded quarterly for 10 years.
67. math

the total amount of interest on this loan of \$6000 for 150 days is \$210.50. what is the rate of interest on this loan? If not compounded, or simple interest, then Interest=Principal(rateinterest)*time Here time is 5/12 of a year, you are given the interest
68. 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 %
69. 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)
70. math

An investment of \$2500 is made at an annual interest rate of 5.5% .How much additional money must be invested at an annual simple interest rate of 8% so that the total interest earned is 7% of the total investment?
71. Financial Math

An investment of \$2500 accumulates at 6% p.a compounded semi annually for 3 years. At that time, the interest rate is changed to 5% compounded monthly. How much is the investment worth 2 years after the change in interest rate? What is interest gained at
72. 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?
73. 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).
74. math

Find the present value of \$53705.69 due in 5 yr at an interest rate of 8%/year compounded continuously. \$ ?
75. 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
76. math

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

Find the present value of \$26997.18 due in 3 yr at an interest rate of 10%/year compounded continuously. \$?
78. 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?
79. math

Find the present value of \$26997.18 due in 3 yr at an interest rate of 10%/year compounded continuously. \$ ?
80. Engineering Economy

The football coach at the Midwestern university was given a 5yr employment contract that paid \$22500 the first year and increased at an 8% uniform rate in each subsequent year. At the end of the first year's football season, the alumni agreed to buy his
81. Finance

The present value of a \$25,000 perpetuity at a 14 percent discount rate is A. 178,571 B. 285,000 C. 350,000 D. 219, 298
82. Finance

A company has identified the following investments as looking promising. Each requires an initial investment of \$1.2 million. Which is the best investment?Question 4 options: A) a perpetuity that generates a cash flow at the end of year 1 of \$100,000, has
83. 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?
84. Webster University

Your company is considering buying a company that is forecasted to have earnings as shown below. Assuming these estimates to be perfectly accurate, what is the present value of this stream of earnings? Assume an interest rate of 5.5% Year 1 \$50,000 Year 2
85. math

#Plz i need your help guys (the answer for this question)# If you deposit sh. 100,000 in a bank which gives 12% interest rate per year. How much will you earn after 1 year and 6 months? Steve yesterday at 5:42am That would be 100000 * .12 * 1.5 kelvin
86. Finance

you take out a \$250,000, 30-year loan with monthly payments at a 6.5% interest rate. 4 years later, you refinance the remaaining balance at a 4% rate and pay a \$1,000 fee. What is the present value of the savings from doing this?
87. 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?

If the interest rate is 3% and a total of \$4,370.91 will be paid to you at the end of 3 year, what is the present value of that sum.
89. 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

In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as \$10,000 and the interest rate is 10 percent, the borrower “pays” 0.10 x \$10,000 = \$1,000 immediately, thereby receiving net funds of \$9,000
91. 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

You have recently learned that the company where you work is being sold for \$275,000. The company’s income statement indicates current profits of \$10,000 which have yet to be paid out as dividends. Assuming the company will remain a “growing concern”
93. Ordinary Interest

A loan of \$2500 is taken on March 15 and repaid September 15th. The interest rate for the loan was 17.75%. Find the interest using ordinary time and ordinary interest

If you sign a simple discount note for \$2500 at a bank rate for 7%, for 3 months, what is the effective interest rate?
95. accounting

House mortgage You have just purchased a house and have obtained a 30-year, \$200,000 mortgage with an interest rate of 10 percent. Required: a. what is your annual payment? b. Assuming you bought the house on Jan. 1st, what is the principle balance after
96. Finance

The Carter Company's bond mature in 10 years have a par value of 1,000 and an annual coupon payment of \$80. The market interest rate for the bond is 9%. What is the price of these bonds The coupon rate on the bond, (interest/principal at maturity) = 8%
97. programming

Having troube with java, i am not a regular programmer, if anybody can help me out writting this program: write a program that takes two numbers from the java console representing, respectively, an investment and an interest rate(you will expect the user
98. 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
99. 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
100. Finance

A company has identified the following investments as looking promising. Each requires an initial investment of \$1.2 million. Which is the best investment? a)a perpetuity that generates a cash flow at the end of year 1 of \$100,000, has a growth rate of