Question

Calculate the present value of the following amounts: 1. $9,000 at the end of ten years at 14% 2. $9,000 a year at the end of the next ten years at 14% (If using present value tables, use factor amounts rounded to three decimal places, X.XXX. Round your final answers to the nearest whole dollar.) 5 (Click the icon to view Present Value of $1 table.) 5 (Click the icon to view Present Value of Ordinary Annuity of $1 table.) 1. The present value of $9,000 at the end of ten years at 14% is $ 2,428 2. The present value of $9,000 at the end of the next ten years at 14% is $

Answer 1

1) Present value of a future sum:

=PV(rate,nper,pmt,fv)

=PV(14%,10,,9000)

=2428

2) Present value of annuity:-

=PV(14%,10,9000)

=46945