Question

Assuming an interest rate of 20% compounded semi-annually, calculate
the present value of a $91,900 cash flow that will occur eight years
from now.

Use the time value of money factors posted in carmen to answer this
question. To access these factors, click modules and then scroll to
week 12. Click on the link labeled present & future value table
factors. No credit will be awarded for this question using a means
other than these table factors to answer this question.


Future Value of a Lump-Sum 15% 1.5209 1.7490 2.0114 20% 1.7280 2.0736 2.4883 Cauw Periods 2% 3 1.0151 | 1.0202 1.0253 1.0304 1.0355 1.0407 1.0459 1.0511 1.0617 1.0777 16 1.0831 17 1.0885 1.0939 1.0994 1.1049 1.1104 1.1160 1.1216 1.1272 25 1.1328 60 1.3489 3% 1.0927 1.1255 1.1593 1.1941 1.2299 1.2668 1.3048 1.3439 1.4257 1.5580 1.6047 1.6529 1.7024 1.7535 1.8061 1.8603 1.9161 1.9736 2.0325 2.0938 5.8916 Rate of interest per period in percent 5% 6% 8% 9% 10% 12% 1.1576 1.1910 1.2597 1.2950 1.3310 1.4049 1.21551.2625 1.3605 1.4116 1.4641 1.5735 1.2783 1.3382 1.4693 1.5386 1.6105 1.7623 1.3401 1.4185 1.5869 1.6771 1.7716 1.9738 1.4071 1.5036 1.7138 1.8280 1.9487 2.2107 1.4775 1.5940 1.8510 1.9926 2.1436 2.4760 1.5513 1.6895 1.9990 2.1719 2.3579 2.7731 1.6289 1.7909 2.1589 2.3674 2.5938 3.1059 1.7959 2.0122 2.5182 2.8127 3.1384 3.8960 2.0789 2.3966 3.1722 3.6425 4.1773 5.4736 2.1829 2.5404 3.4259 3.9703 4.5950 6.1304 2.2920 2.6928 3.7000 4.3276 5.0545 6.8660 2.4066 2.8543 3.9960 4.7171 5.5599 7.6900 7 6900 2.5270 3.0256 4.3157 5.1417 6.11598.6128 2.6533 3.2071 4.6610 5.6044 6.7275 9.6463 2.7860 3.3996 5.0338 6.1088 7.4002 10.8038 2.9253 3.6035 5.4365 6.6586 8.1403 12.1003 3.0715 3.8197 5.8715 7.25798.9543 13.5523 3.2251 4.04896.3412 7.9111 9.8497 15.1786 3.3864 4.29196.8485 8.6231 10.8347 17.0001 18.6792 32.9877 101.257 176.031 304.482 897.597 2.6600 3.5832 3.0590 4.2998 3.51795.1598 4.0456 6.1917 5.3503 8.9161 8.1371 15.4070 9.3576 18.4884 10.7613 22.1861 123755 12.3755 26.6233 14.2318 31.9480 16.3665 38.3376 18.8215 46.0051 21.6447 55.2061 24.8915 66.2474 28.6252 79.4969 32.9190 95.3962 4383.99 56347.5 สสส Present Value of a Lump-Sum Periods 72% | 0.9852 0.9803 0.9754 0.9657 0.9609 0.9561 10 | 0.9514 0.9419 0.9279 0.9233 Rate of interest per period in percent 3% 5% 6% 8% 9% 10% 0.9151 0.8638 0.8396 0.7938 0.7722 0.7513 0.8885 0.8227 0.7920 0.7350 0.7084 0.6830 0.8626 0.7835 0.7473 0.6806 0.6499 0.6209 .6311 0.5963 0.5645 0.8131 0.7107 0.6651 0.5835 0.5470 0.5132 0.7894 0.6768 0.6274 0.5403 0.5019 0.4665 0.7664 0.6446 0.5919 0.5003 0.4604 0.4241 0.7441 0.6139 0.5584 0.4632 0.4224 0.3855 0.7014 0.5568 0.4970 0.3971 0.3555 0.3186 0.64190.4810 0.4173 0.3152 0.2745 0.2394 0.6232 0.4581 0.3937 0.2919 0.2519 0.2176 0.6050 0.4363 0.3714 0.2703 0.2311 0.1978 0.5874 0.4155 0.3503 0.2503 0.2120 0.1799 0.5703 0.3957 0.3305 0.2317 0.1945 0.1635 0.5537 0.3769 0.3118 0.2146 0.1784 0.1486 0.5375 0.35890.2942 0.1987 0.1637 0.1351 0.5219 0.3418 0.2775 0.18390.1502 0.1228 0.5067 0.3256 0.2618 0.1703 0.1378 0.1117 0.4920 0.3101 0.2470 0.1577 0.1264 0.1015 0.4776 0.2953 0.2330 0.1460 0.1160 0.0923 0.1697 0.0535 0.0303 0.0099 0.0057 0.0033 12% 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 0.2567 0.1827 0.1631 0.1456 0.1300 0.1161 0.1037 0.0926 0.0826 0.0738 0.0659 0.0588 0.0011 16 15% 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 0.2472 0.1869 0.1229 0.1069 0.0929 0.0808 0.0703 0.0611 0.0531 0.0462 0.0402 0.0349 0.0304 0.0002 200 0.5787 0.4823 0.4019 0.3349 0.2791 0.2326 0.1938 0.1615 0.1122 0.0649 0.0541 0.0451 0.0376 0.0313 0.0261 0.0217 0.0181 0.0151 0.0126 0.0105 0.0001 18 0.9141 19 0.9096 0.9051 0.9006 0.8961 0.8917 0.8872 0.8828 | 0.7414

Answer 1

Semi-annual interest rate	10%	=20%/2
Number of period(n)	16	=8*2
Amount of cash flow	91900
X PV factor of $1	0.2176	=1/1.10^16
Present value of cash flow	19997.44	or 19997