Value of Future Payments » future http://valueoffuturepayments.com Future Payments Value Advice Thu, 29 Jul 2010 21:39:05 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 An increase in the risk associated with a future stream of cash should result in an increase in the discount? http://valueoffuturepayments.com/an-increase-in-the-risk-associated-with-a-future-stream-of-cash-should-result-in-an-increase-in-the-discount http://valueoffuturepayments.com/an-increase-in-the-risk-associated-with-a-future-stream-of-cash-should-result-in-an-increase-in-the-discount#comments Sat, 10 Jul 2010 07:41:49 +0000 Editor http://valueoffuturepayments.com/an-increase-in-the-risk-associated-with-a-future-stream-of-cash-should-result-in-an-increase-in-the-discount An increase in the risk associated with a future stream of cash should result in an increase in the discount
rate used in the present value calculation.
True False

]]> http://valueoffuturepayments.com/an-increase-in-the-risk-associated-with-a-future-stream-of-cash-should-result-in-an-increase-in-the-discount/feed 1 How do I find a formula for future and present values? http://valueoffuturepayments.com/how-do-i-find-a-formula-for-future-and-present-values http://valueoffuturepayments.com/how-do-i-find-a-formula-for-future-and-present-values#comments Sun, 04 Jul 2010 13:42:37 +0000 Editor http://valueoffuturepayments.com/how-do-i-find-a-formula-for-future-and-present-values A persons annual salary starts out at $30,000. Find the formula for the persons salary t years later and find the salary after 5 years and 30 years in each case below:
a) each year the person recieves a raise of $2,000
b) Each year the person recieves a 5% raise

]]> http://valueoffuturepayments.com/how-do-i-find-a-formula-for-future-and-present-values/feed 2 How do you determine the future value of multiple single cash flows? http://valueoffuturepayments.com/how-do-you-determine-the-future-value-of-multiple-single-cash-flows http://valueoffuturepayments.com/how-do-you-determine-the-future-value-of-multiple-single-cash-flows#comments Wed, 09 Jun 2010 06:39:50 +0000 Editor http://valueoffuturepayments.com/how-do-you-determine-the-future-value-of-multiple-single-cash-flows Hi, I am unsure to determine, if you deposit $100 today and $200 at the end of this year and also deposit another $200 in 2 years from now, assuming that you can earn an interest rate of 4.5%p.a. on your investment, how much would you have in exactly 5 years from now?

Could you please show your working out.

Cheers :)

]]> http://valueoffuturepayments.com/how-do-you-determine-the-future-value-of-multiple-single-cash-flows/feed 1 What is the FORMULA to find out the net present value of an amount to be received in the future? http://valueoffuturepayments.com/what-is-the-formula-to-find-out-the-net-present-value-of-an-amount-to-be-received-in-the-future http://valueoffuturepayments.com/what-is-the-formula-to-find-out-the-net-present-value-of-an-amount-to-be-received-in-the-future#comments Wed, 09 Jun 2010 05:39:43 +0000 Editor http://valueoffuturepayments.com/what-is-the-formula-to-find-out-the-net-present-value-of-an-amount-to-be-received-in-the-future
  • How do I find a formula for future and present values?
  • Use the compound interest formula to find the present value P, for the following given values?
  • 100=200/(1.06)^t how do I find t, this is from the present value formula?
  • The present value of a payment to be received in the future is?
    • ]]>     http://valueoffuturepayments.com/what-is-the-formula-to-find-out-the-net-present-value-of-an-amount-to-be-received-in-the-future/feed 2     how to calculate future value? http://valueoffuturepayments.com/how-to-calculate-future-value http://valueoffuturepayments.com/how-to-calculate-future-value#comments Tue, 08 Jun 2010 13:43:33 +0000 Editor http://valueoffuturepayments.com/how-to-calculate-future-value if you deposit $10000 in a bank that pays 10% interest annually how much will be in your account after 5yrs

    ]]>     http://valueoffuturepayments.com/how-to-calculate-future-value/feed 2     I’m so annoyed by Mother in Law’s bragging over her future hybrid car. How to get her to stop? http://valueoffuturepayments.com/im-so-annoyed-by-mother-in-laws-bragging-over-her-future-hybrid-car-how-to-get-her-to-stop http://valueoffuturepayments.com/im-so-annoyed-by-mother-in-laws-bragging-over-her-future-hybrid-car-how-to-get-her-to-stop#comments Tue, 08 Jun 2010 08:36:16 +0000 Editor http://valueoffuturepayments.com/im-so-annoyed-by-mother-in-laws-bragging-over-her-future-hybrid-car-how-to-get-her-to-stop Ok so my hubby and I don’t drive a new car, it’s almost ten years old. We made a deal to loan money off her boyfriend and pay him back so we can get a second car. Her boyfriend decided he’s going to help her buy her a Toyota Prius because she drives like a mad woman. She is going to have to pay monthly payments which are going to be at least $300 a month ontop of at least $200 a month in gasoline. I am getting so annoyed hearing her say how she put down a deposit and she’s going to get her Prius soon. She already had her other car reposessed and my husband had to cover for her and go retrieve the vehicle that she HID at her boyfriend’s house. She’s a criminal, I know.

    Anyways, I don’t think hybrid cars are a great deal for someone who is always complaining about being broke, who had a car repoed not even 1 year ago, and who cannot afford her utility bills to begin with. It’s just going to add an extra few hundred to her expenses, even if she saves money on gas, she’ll still have a car payment.

    So everytime we see her, she is in lala land about this car she has on hold for when it comes in. What can I say to get her to stop? It’s getting rediculous, and no, I’m not jealous. I’m just ticked that this woman needs two cars and she’s a single mother (and she has to brag to someone less fortunate about it!)

    ]]>     http://valueoffuturepayments.com/im-so-annoyed-by-mother-in-laws-bragging-over-her-future-hybrid-car-how-to-get-her-to-stop/feed 9     Find the future value of the originally annuity? http://valueoffuturepayments.com/find-the-future-value-of-the-originally-annuity http://valueoffuturepayments.com/find-the-future-value-of-the-originally-annuity#comments Tue, 08 Jun 2010 05:40:09 +0000 Editor http://valueoffuturepayments.com/find-the-future-value-of-the-originally-annuity R = 7,500 i = 12% interest compounded semiannually for 2 years

    semiannually is twice a year, soo 0.12/2= 0.06

    soo then FV = 7500(1+0.06)^2= 8427 BUT that answer is not on my multiple choice PLEASE HELP Check my mistake and correct me pleaseee!!!!
    i ment to make it ^4 my bad but it still doesnt come out right is there another step after I calculate that?
    Okay here: Find the future value of the ordinary annuity. R = 7500 i = 12% compouned semiannualy for 2 years

    ]]>     http://valueoffuturepayments.com/find-the-future-value-of-the-originally-annuity/feed 2     What is the Future value for this problem…? http://valueoffuturepayments.com/what-is-the-future-value-for-this-problem http://valueoffuturepayments.com/what-is-the-future-value-for-this-problem#comments Mon, 07 Jun 2010 17:43:35 +0000 Editor http://valueoffuturepayments.com/what-is-the-future-value-for-this-problem Calculate, to the nearest cent, the future value of an investment of $10,000 at 0.45% per month compounded monthly after 24 years.

    When I do the problem I get the answer 11140.25 but I get it wrong.

    Does anyone else get a different answer that’s correct?

    ]]>     http://valueoffuturepayments.com/what-is-the-future-value-for-this-problem/feed 2     What is the future value of $1,500 invested today..? http://valueoffuturepayments.com/what-is-the-future-value-of-1500-invested-today http://valueoffuturepayments.com/what-is-the-future-value-of-1500-invested-today#comments Mon, 07 Jun 2010 15:39:59 +0000 Editor http://valueoffuturepayments.com/what-is-the-future-value-of-1500-invested-today What is the future value of $1,500 invested today at 7% interest in 6 years with interest compounded annually?

    a. $2,251.10
    b. $2,103.83
    c. $999.51
    d. $2,282.30
    e. $2,274.66

    ]]>     http://valueoffuturepayments.com/what-is-the-future-value-of-1500-invested-today/feed 2     what is the future value of a 5year ordinary annuity that promises to pay $300 each year. Interest rate 7%? http://valueoffuturepayments.com/what-is-the-future-value-of-a-5year-ordinary-annuity-that-promises-to-pay-300-each-year-interest-rate-7 http://valueoffuturepayments.com/what-is-the-future-value-of-a-5year-ordinary-annuity-that-promises-to-pay-300-each-year-interest-rate-7#comments Sun, 06 Jun 2010 05:39:37 +0000 Editor http://valueoffuturepayments.com/what-is-the-future-value-of-a-5year-ordinary-annuity-that-promises-to-pay-300-each-year-interest-rate-7 No I won’t be spending the money. What value after 5 years

    ]]>     http://valueoffuturepayments.com/what-is-the-future-value-of-a-5year-ordinary-annuity-that-promises-to-pay-300-each-year-interest-rate-7/feed 1     How will we have money to support millions of more people in the future? http://valueoffuturepayments.com/how-will-we-have-money-to-support-millions-of-more-people-in-the-future http://valueoffuturepayments.com/how-will-we-have-money-to-support-millions-of-more-people-in-the-future#comments Sun, 06 Jun 2010 05:39:35 +0000 Editor http://valueoffuturepayments.com/how-will-we-have-money-to-support-millions-of-more-people-in-the-future How will the system of money work to keep from having an extremely disproprotionate balance of wealth and poverty if the rate of population growth continues to soar and we have many millions of more people in the future?

    Does the system of money have a mechanism built in to combat something like this? For instance, will more money be made (not currency) in order to support more people?

    What is money? Is it silver or what?

    ]]>     http://valueoffuturepayments.com/how-will-we-have-money-to-support-millions-of-more-people-in-the-future/feed 3     why is it not possible to determine the future value of a perpertual stream of cash flow? http://valueoffuturepayments.com/why-is-it-not-possible-to-determine-the-future-value-of-a-perpertual-stream-of-cash-flow http://valueoffuturepayments.com/why-is-it-not-possible-to-determine-the-future-value-of-a-perpertual-stream-of-cash-flow#comments Sun, 06 Jun 2010 04:40:01 +0000 Editor http://valueoffuturepayments.com/why-is-it-not-possible-to-determine-the-future-value-of-a-perpertual-stream-of-cash-flow Like answer # 4, yeah i think the value of the perpetual cash flows is infinite, not constant and simply perpetually increasing.

    ]]>     http://valueoffuturepayments.com/why-is-it-not-possible-to-determine-the-future-value-of-a-perpertual-stream-of-cash-flow/feed 4     i need help on a Finance question regarding Future Value? http://valueoffuturepayments.com/i-need-help-on-a-finance-question-regarding-future-value http://valueoffuturepayments.com/i-need-help-on-a-finance-question-regarding-future-value#comments Sat, 05 Jun 2010 20:40:23 +0000 Editor http://valueoffuturepayments.com/i-need-help-on-a-finance-question-regarding-future-value i earned 53 cents during a 30-day month in a savings account that pays 5.16% and my average daily balance was $127.89……i am playing around with the future value formula FV= PV[1+(r/m)]^(m*n) and i cannot figure out how they got 53 cents of interest from a $127.89 average daily balance? Interest is compounded daily and computed from the average daily balance on the last day of the month.

    ]]>     http://valueoffuturepayments.com/i-need-help-on-a-finance-question-regarding-future-value/feed 3     Future Value -Math – Accounting? http://valueoffuturepayments.com/future-value-math-accounting http://valueoffuturepayments.com/future-value-math-accounting#comments Sat, 05 Jun 2010 05:41:09 +0000 Editor http://valueoffuturepayments.com/future-value-math-accounting Please help me solve the following questions.

    1. Determine the yield to maturity to the nearest tenth of 1 percent of a zero coupon bond with 8 years to maturity that is currently selling for $404.

    2. If a 16 year old high school student put $2,000 at the end of each year for 4 years into an IRA that earned a rate of 9%, how much would she have accumulated by age 65? Assume funds are left to accumulate for 45 years (age 20 – 65) at 9%.

    ]]>     http://valueoffuturepayments.com/future-value-math-accounting/feed 1     Need help with Calculate the future value of the following? http://valueoffuturepayments.com/need-help-with-calculate-the-future-value-of-the-following http://valueoffuturepayments.com/need-help-with-calculate-the-future-value-of-the-following#comments Sat, 05 Jun 2010 03:49:18 +0000 Editor http://valueoffuturepayments.com/need-help-with-calculate-the-future-value-of-the-following Please show work….

    a. $500 if invested for five years at a 4% interest rate

    b. $200 if invested for three years at a 5% interest rate

    c. $2100 if invested for seven years at an 12% interest rate

    d. $6300 if invested for ten years with a 0% interest rate
    Annual percentage yield

    ]]>     http://valueoffuturepayments.com/need-help-with-calculate-the-future-value-of-the-following/feed 2     If the discount rate is 11.2%, find the future value of $10,440? http://valueoffuturepayments.com/if-the-discount-rate-is-11-2-find-the-future-value-of-10440 http://valueoffuturepayments.com/if-the-discount-rate-is-11-2-find-the-future-value-of-10440#comments Fri, 04 Jun 2010 22:39:13 +0000 Editor http://valueoffuturepayments.com/if-the-discount-rate-is-11-2-find-the-future-value-of-10440 6.If the discount rate is 11.2%, find the future value of $10,440 invested every year for 20 years with the first payment made one year from now.
    a. 548,687
    b. 480,101
    c. 617,273
    d. 685,859

    ]]>     http://valueoffuturepayments.com/if-the-discount-rate-is-11-2-find-the-future-value-of-10440/feed 0     The interest rate is 8 percent. What is the future value? http://valueoffuturepayments.com/the-interest-rate-is-8-percent-what-is-the-future-value http://valueoffuturepayments.com/the-interest-rate-is-8-percent-what-is-the-future-value#comments Fri, 04 Jun 2010 15:39:13 +0000 Editor http://valueoffuturepayments.com/the-interest-rate-is-8-percent-what-is-the-future-value Pedro Gonzalez will invest $5,000 at the beginning of each year for the next 9 years. The interest rate is 8 percent. What is the future value?
    A. $58,471.
    B. $62,440.
    C. $67,435.
    D. $72,435.

    ]]>     http://valueoffuturepayments.com/the-interest-rate-is-8-percent-what-is-the-future-value/feed 1     Future Value Math Question? http://valueoffuturepayments.com/future-value-math-question http://valueoffuturepayments.com/future-value-math-question#comments Fri, 04 Jun 2010 11:39:01 +0000 Editor http://valueoffuturepayments.com/future-value-math-question Find the Future Value of an annuity. Given the periodic PMT=$2000, i=0.005, n=30. Round all final answers to the nearest penny.

    ]]>     http://valueoffuturepayments.com/future-value-math-question/feed 1     Help Please!!!Find the future value of the ordinary annuity? http://valueoffuturepayments.com/help-pleasefind-the-future-value-of-the-ordinary-annuity http://valueoffuturepayments.com/help-pleasefind-the-future-value-of-the-ordinary-annuity#comments Fri, 04 Jun 2010 05:44:18 +0000 Editor http://valueoffuturepayments.com/help-pleasefind-the-future-value-of-the-ordinary-annuity (Round to the nearest cent) $130 monthly payment, 5.5 %interest, 1 year
    I have no clue how to do this and any help would be appreciated:)

    ]]>     http://valueoffuturepayments.com/help-pleasefind-the-future-value-of-the-ordinary-annuity/feed 2     how do you calculate IRR and future value in excel sheet? http://valueoffuturepayments.com/how-do-you-calculate-irr-and-future-value-in-excel-sheet http://valueoffuturepayments.com/how-do-you-calculate-irr-and-future-value-in-excel-sheet#comments Fri, 04 Jun 2010 05:44:16 +0000 Editor http://valueoffuturepayments.com/how-do-you-calculate-irr-and-future-value-in-excel-sheet i want to know like if a person invests Rs100,000 continuosly for 15 years how much he would get back if compounded annually at 10%?

    ]]>     http://valueoffuturepayments.com/how-do-you-calculate-irr-and-future-value-in-excel-sheet/feed 1     Will anyone EVER accept Public Campaign Finance in future elections? http://valueoffuturepayments.com/will-anyone-ever-accept-public-campaign-finance-in-future-elections http://valueoffuturepayments.com/will-anyone-ever-accept-public-campaign-finance-in-future-elections#comments Thu, 03 Jun 2010 21:40:51 +0000 Editor http://valueoffuturepayments.com/will-anyone-ever-accept-public-campaign-finance-in-future-elections Supporters of public financing generally believe that the public financing system decreases corruption; in addition, many proponents believe that public financing promotes other values, such as civic participation or greater faith in the political process.

    ]]>     http://valueoffuturepayments.com/will-anyone-ever-accept-public-campaign-finance-in-future-elections/feed 10     Compute the future value for the given investments at the end of 5 years when P = $8000; r = 7.25% and you? http://valueoffuturepayments.com/compute-the-future-value-for-the-given-investments-at-the-end-of-5-years-when-p-8000-r-7-25-and-you http://valueoffuturepayments.com/compute-the-future-value-for-the-given-investments-at-the-end-of-5-years-when-p-8000-r-7-25-and-you#comments Thu, 03 Jun 2010 02:39:17 +0000 Editor http://valueoffuturepayments.com/compute-the-future-value-for-the-given-investments-at-the-end-of-5-years-when-p-8000-r-7-25-and-you Compute the future value for the given investments at the end of 5 years when P = $8000; r = 7.25% and you compound the interest quarterly.

    ]]>     http://valueoffuturepayments.com/compute-the-future-value-for-the-given-investments-at-the-end-of-5-years-when-p-8000-r-7-25-and-you/feed 2     Future Value and Multiple Cash Flows? http://valueoffuturepayments.com/future-value-and-multiple-cash-flows http://valueoffuturepayments.com/future-value-and-multiple-cash-flows#comments Wed, 02 Jun 2010 13:39:00 +0000 Editor http://valueoffuturepayments.com/future-value-and-multiple-cash-flows an insurance company is offering a new policy to its customers. typically, te policy is bought by a parent for a child at the child’s birth. the details of the policy are as follows: the purchaser makes the following sex payments to the insurance company:
    1st bithday: $900
    2nd birthday: $900
    3rd birthday: $1,000
    4th birthday: $1,000
    5th birthday: $1,100
    6th birthday: $1,100

    after the child’s 6th birthday, no more payments are made. when the child reachers afe 65, he or she receives $500,000. if the relevant interest rate is 12 percent for the first six years abd 8 percent for all subsequent years, is the policy worth buying? solve necessary calculations.

    ]]>     http://valueoffuturepayments.com/future-value-and-multiple-cash-flows/feed 2     How far into the future do your plans or thoughts extend? http://valueoffuturepayments.com/how-far-into-the-future-do-your-plans-or-thoughts-extend http://valueoffuturepayments.com/how-far-into-the-future-do-your-plans-or-thoughts-extend#comments Wed, 02 Jun 2010 08:37:35 +0000 Editor http://valueoffuturepayments.com/how-far-into-the-future-do-your-plans-or-thoughts-extend I am usually thinking as far ahead about my next car payment…

    ]]>     http://valueoffuturepayments.com/how-far-into-the-future-do-your-plans-or-thoughts-extend/feed 14     Finance Problem: Future value of an annuity? http://valueoffuturepayments.com/finance-problem-future-value-of-an-annuity http://valueoffuturepayments.com/finance-problem-future-value-of-an-annuity#comments Wed, 02 Jun 2010 05:48:46 +0000 Editor http://valueoffuturepayments.com/finance-problem-future-value-of-an-annuity Your client is 40 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save 5,000 per year, and you advise her to invest it in the stock market, average return of 9%.

    I figured out that at 65 she would have saved: $423,504.48. At 70 she would save: 681,537.69.

    The question then asks if she expects to live for 20 years in retirement if she retires at 65 and 15 years if she retires at 70, at the same interest rate….how much could she withdraw at the end of each year after retirement at each retirement age?

    I just need some help in the right direction for the final part of this problem. Thanks in advance.

    ]]>     http://valueoffuturepayments.com/finance-problem-future-value-of-an-annuity/feed 3     Will i be able to earn good money in the future as there are too many foreigners coming to ENGLAND? http://valueoffuturepayments.com/will-i-be-able-to-earn-good-money-in-the-future-as-there-are-too-many-foreigners-coming-to-england http://valueoffuturepayments.com/will-i-be-able-to-earn-good-money-in-the-future-as-there-are-too-many-foreigners-coming-to-england#comments Tue, 01 Jun 2010 17:41:07 +0000 Editor http://valueoffuturepayments.com/will-i-be-able-to-earn-good-money-in-the-future-as-there-are-too-many-foreigners-coming-to-england I hate this, at the moment I am studying at university,I would like to earn a lot of money in the future and have my own property and car?
    I am studying for a Law degree
    There are too many I wish that they would stay in there own country
    I am not white by the way not that it matters anyway or black or chinese!

    ]]>     http://valueoffuturepayments.com/will-i-be-able-to-earn-good-money-in-the-future-as-there-are-too-many-foreigners-coming-to-england/feed 10     What is the difference between Present Value and Future Value? http://valueoffuturepayments.com/what-is-the-difference-between-present-value-and-future-value http://valueoffuturepayments.com/what-is-the-difference-between-present-value-and-future-value#comments Tue, 01 Jun 2010 13:39:04 +0000 Editor http://valueoffuturepayments.com/what-is-the-difference-between-present-value-and-future-value Can somebody please explain that to me and maybe even provide a simple calculation how you obtain either or?

    ]]>     http://valueoffuturepayments.com/what-is-the-difference-between-present-value-and-future-value/feed 2     Excel Future Value function and formula. Please help ? http://valueoffuturepayments.com/excel-future-value-function-and-formula-please-help http://valueoffuturepayments.com/excel-future-value-function-and-formula-please-help#comments Mon, 31 May 2010 23:40:10 +0000 Editor http://valueoffuturepayments.com/excel-future-value-function-and-formula-please-help So this is the info i am given and i need to calculate FV on excel using three different methods. Using the formula, the function and manually.
    oppening balance=12500
    Annual interest rate=7.75%
    Compound period per annum=4
    number of years =5
    it also says a compounding period is every three months.
    does anyone know how to do it using the formula ( FV=P(1+r/n)^nt
    or by using the actual function on excel.
    It also says to not hardcode and also to use relative reference

    ]]>     http://valueoffuturepayments.com/excel-future-value-function-and-formula-please-help/feed 1     What is the present value of the following future amounts? http://valueoffuturepayments.com/what-is-the-present-value-of-the-following-future-amounts http://valueoffuturepayments.com/what-is-the-present-value-of-the-following-future-amounts#comments Mon, 31 May 2010 00:40:53 +0000 Editor http://valueoffuturepayments.com/what-is-the-present-value-of-the-following-future-amounts What is the present value of the following future amounts?

    a. $800 to be received 10 years from now discounted back to the present at 10 percent
    b. $400 to be received 6 years from now discounted back to the present at 6 percent
    c. $1,000 to be received 8 years from now discounted back to the present at 5 percent
    d. $900 to be received 9 years from now discounted back to the present at 20 percent

    ]]>     http://valueoffuturepayments.com/what-is-the-present-value-of-the-following-future-amounts/feed 1     Calculate the future value of a deposit of $5,000 compounded annually at an interest rate of 6% over 23 years? http://valueoffuturepayments.com/calculate-the-future-value-of-a-deposit-of-5000-compounded-annually-at-an-interest-rate-of-6-over-23-years http://valueoffuturepayments.com/calculate-the-future-value-of-a-deposit-of-5000-compounded-annually-at-an-interest-rate-of-6-over-23-years#comments Sun, 30 May 2010 21:40:06 +0000 Editor http://valueoffuturepayments.com/calculate-the-future-value-of-a-deposit-of-5000-compounded-annually-at-an-interest-rate-of-6-over-23-years really am stuck on this. answer and formula would be great!

    ]]>     http://valueoffuturepayments.com/calculate-the-future-value-of-a-deposit-of-5000-compounded-annually-at-an-interest-rate-of-6-over-23-years/feed 1