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CLOUnD2082088810468/13a96602f99dd IENG 301 Spring 2019 (1) Homework: Ch. 2 HW Probs Score: 0 of 10 pts Problem 2-14 (book/static) 3 of 12 (3 complete) What is the present worth of these future payments? (a) $25,500 eight years from now at 12% compounded annually (b) $58,000 twelve years from now at 4% compounded annually (c) $25,000 nine years from now at 6% compounded annually (d) $35,000 four years from now at 9% compounded annually Click the icon to view the interest factors for discrete compounding when i-4% per year. Click the icon to view the interest factors for discrete compounding when i-6% per year. Click the icon to view the interest factors for discrete compounding when i:9% per year. (a) The present worth is s (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer
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Answer #1

The formula = FV/((1+interest rate)^number of years)

a) PV = 25000/((1+0.12)^12) = $6417

b) PV = 58000/((1+0.04)^4) = $49579

c) PV = 25000/((1+0.06)^9) = $14797

d) PV = 35000/((1+0.09)^4) = $24795

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