Purchase Solution

What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%?

Not what you're looking for?

Ask Custom Question

Using a present value table, your calculator, or a computer program present value function, answer the following questions:

a) What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%?
b) What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%?
c) How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of 12 years, assuming that the account will earn 10% interest?
d) How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of seven years, assuming that the account will earn 12% interest?

Purchase this Solution
Solution Summary

Your tutorial showing the present value calculations in Excel are attached. You can change any of the ingredients and the answer will automatically update.

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

View More Free Quizzes
Related BrainMass Solutions

  • Step-wise answer to Present Value

    What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%? b. What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%? c.

  • Mathematics - Exponential and Reciprocal Functions

    What is the present value of $15,000 to be paid at the end of 20 years using an interest rate of 18%? 3.

  • Interest and Present Value

    What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%? b. What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%? c.

  • Important Information About Exponential and Reciprocal Functions

    What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%? c.

  • Quantitative Reasoning- Exponential and Reciprocal Fuction

    What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%? b. What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%? c.

  • Finance problems: Forecasting, present value etc,

    What is the present value of nine annual cash payments of $ 4,000, to be paid at the end of each year using an interest rate of 6%? b. What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%? c.

  • Finance: Time value of money questions.

    The ______ value of an amount is the value of that amount on a particular date prior to the time the amount is paid or received. present current future investment 18.

  • Pure Expectations Theory and Spot Rate

    4., if the interest rate is 12% What will be the present value if the interest rate is changed to 16%?

  • Present value calculations in journal entries

    What is the present value of nine annual cash payments of $8,000, to be paid at the end of each year using an interest rate of 6%? B. What is the present value of $30,000 to be paid at the end of 20 years using an interest rate of 18%? C.

View More Related Solutions