The present value of $10,000 discounted at 5% per year and received at the end of 5 years is (2024)

FAQs

The present value of $10,000 discounted at 5% per year and received at the end of 5 years is? ›

Present Value (PV) Calculation Example

Expert-Verified Answer

(c) P=$10,000/(1+0.03)¹⁰=$7,440.94 is the present value of $10,000 to be received 5 years from now, discounted back at an annual rate of 6% compounded semiannually.

Calculate the present value of a $10,000 perpetuity at a 6 percent discount rate. Answer: PV = $166,667 6.

Expert-Verified Answer

The present value of $4,500 discounted back 5 years with an interest rate of 4.5%, compounded semiannually, is approximately $3,678. Where PV is the present value, FV is the future value, r is the interest rate, n is the number of compounding periods per year, and t is the number of years.

Summary: The present value of $10,000 discounted at 5% per year and received at the end of 5 years is $ 7737.81.

Summary: An investment of $10000 today invested at 6% for five years at simple interest will be $13,000.

Answer and Explanation:

Computation of the present value: The present value of $1,000 in 5 years at a 6% interest rate is computed by dividing the future value, i.e., $1,000, by the 1 added to the interest rate, i.e., 6% for 5 years. Thus, the present value of $1,000 in 5 years at a 6% interest rate is $747.26.

Hence, the present value of a $100 perpetuity discounted at 5% is $2,000 and not $5,000, making the statement false.

Answer and Explanation:

Applying the formula, the present value is: 100 / 5% = 100 * 20 = 2000.

Your answer should be between 8032.00 and 9554.00, rounded to 2 decimal places, with no special characters.

What is the present value of 10000 due in 2 years at 5% compound interest? ›

10500 due in 1 year at 5% p.a. compound interest. Therefore, the present value of Rs. 10000 due in 2 years at 5% p.a. compound interest when the interest is paid on a yearly basis is Rs. 9070.

Present value = 1000/0.08 = $ 12,50…

Discount = Listed Price - Selling Price. Discount = Listed Price × Discount Rate. Rate of Discount = Discount% = (Discount/Listed Price) × 100.

There are two formulas for calculating discount percentages: Discount (%) = (Discount/List Price) × 100. Discount = List Price - Selling Price.

The present value of $1 due in 3 years at a 10% discount rate is approximately $0.751.

Answer and Explanation:

F V = 10000 e 0.07 ( 5 ) = $ 14 , 190.68 .

The present value formula PV = FV/(1+i)^n states that present value is equal to the future value divided by the sum of 1 plus interest rate per period raised to the number of time periods.

Answer and Explanation: The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24.