Question

2. For each of the following, compute the Present Value. Show your work.

Present Value	Years	Interest Rate	Future Value
	13	10%	15,500
	4	8%	51,555
	29	24%	886,072
	40	35%	550,165

Answer 1

1.

Present value = Future value / (1+i)ⁿ

= 15,500/ (1+0.10)¹³

= 15,500/(1.10)¹³

= 15,500/3.452271

= $4,489.80

2.

Present value = Future value / (1+i)ⁿ

= 51,555/ (1+0.08)⁴

= 51,555/(1.08)⁴

= 51,555/1.36048896

= $37,894.46

3.

Present value = Future value / (1+i)ⁿ

= 886,072/ (1+0.24)²⁹

= 886,072/(1.24)²⁹

= 886,072/511.951559

= $1,730.77

4.

Present value = Future value / (1+i)ⁿ

= 550,165/ (1+0.35)⁴⁰

= 550,165(1.35)⁴⁰

= 550,165/163,437.135

= $3.36

Present Value	Years	Interest Rate	Future Value
$4,489.80	13	10%	15,500
$37,894.46	4	8%	51,555
$1,730.77	29	24%	886,072
$3.36	40	35%	550,165

Kindly comment if you need further assistance.

Thanks‼!