Question

part 1 1,000.00 future value = periodic interest rate = number of compounding periods = 0.035 32.00 what is the present value (single payment)? part 2 periodic payment periodic interest rate = number of compounding periods = 32.00 0.035 32.00! What is the present value of this annuity? part 3 add part 1 and part 2 part 4 1,000.00 future value = periodic interest rate = number of compounding periods = 0.06 32.00 what is the present value (single payment)? part 5 periodic payment periodic interest rate = number of compounding periods = 40.00 0.06 32.00 What is the present value of this annuity? part 6 add part 4 and part 5

I need help with solving this please show your formulas so, I can understand it.

Thanks

Answer 1

X fo part 1 B 1,000.00 0.035 part 1 future value periodic interest rate number of compounding periods present value (single payment) 332.59 part 2 periodic payment periodic interest rate number of compounding periods present value of this annuity 32.00 0.035 32.00 610.20 part 3 add part 1 and part 2 942.79 part 4 future value periodic interest rate number of compounding periods present value (single payment) 1,000.00 0.06 32.00 154.96 part 5 periodic payment periodic interest rate number of compounding periods present value of this annuity 40.00 0.06 32.00 563.36 part 6 add part 4 and part 5 718.32

for formulas and calculations, refer to the image below -

x fc part 1 1 в part 1 future value periodic interest rate number of compounding periods present value (single payment) 1000 0.035 32 =PV(D3,D4,0,-D2) 32 0.035 part 2 periodic payment periodic interest rate number of compounding periods present value of this annuity 32 =PV(D8, D9,-D7) part 3 add part 1 and part 2 =D5+D10 1000 terest rate 0.06 part 4 future value periodic interest rate number of compounding periods present value (single payment) =PV(D15,D16,0,-D14) 40 0.06 part 5 periodic payment periodic interest rate number of compounding periods present value of this annuity =PV(D20,D21,-D19) part 6 add part 4 and part 5 =D17+D22

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