What is the present value of receiving a single amount of $5000 at the end of three years if the time value of money is 8\% per year compounded quarterly?

approximately $3,940.00
We see that the present value of receiving $5,000 three years from today is approximately $3,940.00 if the time value of money is 8\% per year, compounded quarterly.

Why is a peso today worth more than a peso in the future?

Money today is worth more than tomorrow’s because of inflation (on the side that’s unfortunate for you) and compound interest (the side you can make work for you). Inflation increases prices over time, which means that each dollar you own today will buy more in the present time than it will in the future.

What is the present value of $8000 to be paid at the end of three years if interest rate is 11 \%?

What is the present value of $8,000 to be paid at the end of three years if interest rate is 11\%? options:$4,872.

How much is $10000 invested in the stock market worth?

If you got an average 7\% return the following year, your investment would then be worth $11,449. Over the years, that money can really add up: If you kept that money in a retirement account over 30 years and earned that average 7\% return, for example, your $10,000 would grow to more than $76,000.

How much should you invest in the stock market at age 20?

As a simple example, a young man at age 20 invested $1,000 into the stock market at a 10\% annual return rate, the S&P 500’s average rate of return since the 1920s. At the age of 65, when he retires, the fund will grow to $72,890, or approximately 73 times the initial investment!

How much interest do you get on a 10 000 account?

Each time interest is calculated and added to the account, the larger balance results in more interest earned than before. For example, if you put $10,000 into a savings account with a 1\% annual yield, compounded daily, you’d earn $101 in interest the first year, $102 the second year, $103 the third year and so on.

What happens to your money when you invest in the market?

When the value of your investment goes up, you earn a return. If you leave your money and the returns you earn invested in the market, those returns are compounded over time in the same way that interest is compounded. Investment returns will vary year to year and even day to day.