Homework Answers
| Future Amount | Interest Rate | No. of Period | PV of $1 Factor | Present Value | |
| 1 | $2,200 | 6% | 11 | 0.52679 | $1,158.938 |
| 2 | $1,200 | 7% | 13 | 0.41496 | $497.952 |
| 3 | $2,600 | 10% | 21 | 0.13513 | $351.338 |
| 4 | $5,100 | 20% | 6 | 0.3349 | $1,707.99 |
PV of $1 Factor - This can be taken from the table provided. To get this factor value we need two things. 1st interest rate and second is no. of period.
Like for 1 - Interest rate is 6% and no. of period is 11. So we will look for the factor value in the table. We will look for values at 6% interest rate and then look for value at 11th row and the intersecting value at 11th row and 6% column we will get the factor value which comes out to be 0.52679.
Same is done for the rest figures.
To get the present value, we will have to multiply the future amount with the PV of $1 factor.
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