Purchase Solution

Future Value and Present Value Calcuation

Not what you're looking for?

Ask Custom Question

1) Your aunt offers you a choice of $20,000 in 50 years or $45 today. If money is discounted at 13 percent, which should you chose?

2) If you invest $12,000 today, how much will you have
a. in 6 years at 7%
b. in 15 years at 12%
c. in 25 years at 10%
d. in 25 years at 10 percent compounded semiannually

Purchase this Solution
Solution Summary

Future value/present values are determined.

Solution Preview

1) The present value of $50,000 received after 50 years = 50000/(1+discount rate)^number of years
=50000/(1+13%)^50 = 110.93
Since present value of $50,000 to be received ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • Dhahran Roads (A) - Capital Budgeting

    If you look at the attached file, there is the NPV calculation and the IRR calcuation. Both these calculations take into effect the time value of money. The time value of money is taken into account when we discount the cash flows.

  • Reaction Types, Limiting Reagents and Yield Questions

    - Suppose you carefully evaporate this water and collect it in a graduated cylinder which indicates that there are 1.40mL of water present. What is your percent yield?

  • NPV/IRR/Profitability Index

    We know that the inflow multiplied by the annuity factor gives the present value of the annuity. We can write Inflow X annuity factor = present value. For project A - 10,000 X annuity factor = 30,000 for IRR. annuity factor = 30,000/10,000 = 3.

  • Solving a residual income equation (what is the right formula)?

    exactly what goes into a firm price's calcuation and a residual income calculation --- so please don't just type values into the spreadsheet if there's an equation behind a particular value in the Excel spreadsheet's cell.

  • calcuation of heat and work in the piston-cylinder problem

    459018 calcuation of heat and work in the piston-cylinder problem Please show all the work. A piston-cylinder device whose piston is resting on a set of stops initially contains 3 kg of air at 2 bar and 27 degree Centigrades.

  • Present and future values

    .%)^1 Answer: Future Value= $11,000.00 Present Value= $9,166.67 Determines present value and future value.

  • Present Value and Future Value of Annuities

    377935 Present Value and Future Value of Annuities How would a manager calculate present value and future value for single amounts, annuities, and uneven streams of cash flow. 1.

  • Calculating interest rates

    42209 Interest Rates: Given Present/Future Value and Time Period Find the interest rate implied by the following combination of present and future values: Present Value=400, Future Value=684, Years=11 Present Value=183, Future Value=249, Years=4

  • Present Value / Future Values

    Future Value = 100X(1.04)^20 = $219.11 The solution explains the calculation of present value and future value

View More Related Solutions