What is the present value of $10000 invested at 12% for 10 years?
At a discount rate of 12%, the present value of $10,000 received in 10 years is $3,219.73 today. What would happen to the Present Value of the investment if you only had to wait 7 years to receive the $10,000 instead of 10 years? There are 2 steps to solve this one.
If you invest $10,000 today at 10% interest, how much will you have in 10 years? Summary: The future value of the investment of $10000 after 10 years at 10% will be $ 25940.
If you received $10,000 today, its present value would, of course, be $10,000 because the present value is what your investment gives you now if you were to spend it today.
The future value of $10,000 invested for two years at 10% interest compounded annually is $12,100.
Expert-Verified Answer
The amount that needs to be invested at the end of each year at 10 percent annually to grow to $10,000 at the end of five years is $1,723.57. In this case, the future value is $10,000, the interest rate is 10 percent (or 0.10), and the number of periods is five.
The principal amount is Rs 10,000, the rate of interest is 10% and the number of years is six. You can calculate the simple interest as: A = 10,000 (1+0.1*6) = Rs 16,000. Interest = A – P = 16000 – 10000 = Rs 6,000.
In this case, the principal amount (P) is $10,000, the annual interest rate (r) is 5% or 0.05, the number of times interest is compounded per year (n) is 1 (since it's compounded annually), and the number of years (t) is 10. So, after 10 years, the person would have approximately $16,288.90 in their investment account.
Answer and Explanation:
Opportunity cost (r) is 9%. Hence, the present value of $100 to be received 10 years from today is $42.241.
Present Value (PV) Calculation Example
Assuming that the discount rate is 5.0% – the expected rate of return on comparable investments – the $10,000 in five years would be worth $7,835 today.
Expert-Verified Answer
The present value of $1,000 to be received in 10 years if the interest rate is 12% compounded semiannually is $311.80.
What is the present value of $10000 over a term of 5 years at an annual interest rate of 7% if interest is compounded?
Answer and Explanation:
F V = 10000 ( 1 + 0.07 1 ) 1 ( 5 ) = $ 14 , 025.52 .
If a $1,000 investment is held for five years in a savings account with 10% simple interest paid annually, the FV of the $1,000 equals $1,000 × [1 + (0.10 x 5)], or $1,500.
Expert-Verified Answer
The present value of a perpetuity is calculated by dividing the annual payment by the interest rate. In this case, the present value of the perpetuity would be $10,000/0.10 = $100,000.
Investments, such as stocks, do not have a fixed rate of return, but the Rule of 72 still can give you an idea of the kind of return you'd need to double your money in certain amount of time. For example, to double your money in six years, you would need a rate of return of 12%.
Answer and Explanation:
The future value of the investment is $12,968.71. It is the accumulated value of investing $5,000 for 10 years at a rate of 10% compound interest.
The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24. It is computed as follows: F u t u r e V a l u e = 1 , 000 ∗ ( 1 + i ) n.
Summary: An investment of $10000 today invested at 6% for five years at simple interest will be $13,000.
You want to know your total interest payment for the entire loan. To start, you'd multiply your principal by your annual interest rate, or $10,000 × 0.05 = $500. Then, you'd multiply this value by the number of years on the loan, or $500 × 5 = $2,500.
Hence, if a two-year savings account containing $1,000 pays a 6% interest rate compounded daily, it will grow to $1,127.49 at the end of two years.
If you saved $10 a day for 10 years you would have $36,500. As far as gaining money is concerned, I recommend you save that money and then invest it instead of letting it sit in a bank account. That's not counting leap year days which would add 2–3 days to the math depending on if the first year was a leap year or not.
How much is $100 a month for 10 years?
| If you invest $100 a month for this many years... | ...this is how much you'll end up with. |
|---|---|
| 10 | $21,037.40 |
| 15 | $41,939.68 |
| 20 | $75,603.00 |
| 25 | $129,818.12 |
Answer and Explanation: Present Value(PV)= ? Now we will substitute the respective values. So the present value will be approximately $32,200 .
The present value of $100 spent or earned twenty years from now is, using an interest rate of 10 percent, $100/(1.10)20, or about $15.
The present value of a future cash flow is the value of that cash flow in today's dollars. $110K to be received in one year is worth $100K today if the interest rate is 10%.
Experts have been vetted by Chegg as specialists in this subject. >>>>> PV = Present Value = $1,000 n = 5 years r = Annual interest rate = 12% Future Value = PV * (1+r)^n = $1,000 * (1+12%)^5 = $1,000 * 1.762342 = $1,762.342 Future Value is $1,762.34 >>>> PV = Present Value = $1,000 n = 10 years r = Annual interest…
