Determine the present values (PVs)

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To Kim Woods

   Determine the present values (PVs) if 5,000 is received in the future (i.e., at the end of each indicated time period) in each of the following situations. (a)5% for ten years (b) 7 percent for seven years. (c)9 percent for four years.

 

2)      Determine the present value (PV) if 15,000 is to be received at the end of eight years and the discount rate is 9 percent. How would your answer change if you had to wait six years to receive the 15,000?

 

3)      Use a financial calculator or computer soft wear program answer the questions. (a)what would be the future value of 15,555.00 invested now if it earns interest at 14.5 percent for seven years. (b) what would be the FB of 19,378. Invested now if the money remains deposited for eight years and the annual interest rate is 18 percent.

 

4)      What is the present value of 359,000 that is to be received at the end of twenty -three years if the discount rate is 11 percent? How would your answer change in (a)if the 359,000 is to be received at the end of twenty years.

 

5)      What would be the future value of 19,378 invested now if the money remains deposited for eight years, the annual interest rate is 18 percent, and interest on the investment is compounded semiannually., How would you answer for a change if quarterly compounding were used

    • 8 years ago
    • 20
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