Answer:
Present value is nothing but how much future sum of money worth today. It is one of the important concepts in finance and it is a basis for stock pricing, bond pricing, financial modeling, banking, and insurance, etc. Present value provides us with an estimated amount to be spent today to have an investment worth a certain amount of money at a specific point in the future. Present value is also called a discounted value. It is an indicator for investors that whatever money he will receive today can earn a return in the future. With the help of present value, method investors calculate the present value of a firm’s expected cash flow to decide if a stock is worth to invest today or not.
The formula for calculating PV is shown below
PV = CF/ (1+r)n
Here ‘CF’ is future cash flow, ‘r’ is a discounted rate of return and ‘n’ is the number of periods or year.
Example
Let’s say that you have been promised by someone that he will give you 10,000.00 Rs 5 year from today and interest rate is 8% so no we want to know what the present value of 10,000.00 Rs which you will receive in future so,
PV = 10,000/ (1+0.08)5
PV = 6805.83 (To the nearest Decimal)
So present-day value of Rs 10,000.00 is Rs 6805.83
Explanation:
Answer:
Premium
Explanation:
Whenever a bond sells for more than its face value, it sells at a premium, which means that the investors are willing to pay more for the bond than its face value. This happens when the coupon payment percentage on the bond are higher than the yield to maturity of the bond, because the investors required return is the yield to maturity, when the bond pays more than the required return the investors are willing to pay more for the bond.
Answer:
$115.38
Explanation:
Since Nancy only has to pay 20% of her health insurance premium, her total biweekly deduction = $3,000 / 26 weeks = $115.38
Generally health insurance premiums are paid on a monthly basis, but lately some health care providers are starting to take quarterly, semiannual and even annual payments. The thing is that you always pay in advance, so generally people choose to pay it with their paychecks. It makes sense, since unless you earn a lot of money, a $3,000 payment would represent a large portion of your salary.
Answer:
so basically anyhting over 295 :)
Explanation:
331.35 = 175 + (0.53m)
156.35 = 0.53m
295 = m
It would be called scarcity.
