Question

E6.4 (LO 3, 4) (Computation of Future Values and Present Values) Using the appropriate interest table, answer the following questions. (Each case is independent of the others.)

a. What is the future value of 20 periodic payments of $ 4,000 each made at the beginning of each period and compounded at 8%?

b. What is the present value of $ 2,500 to be received at the beginning of each of 30 periods, discounted at 5 % compound interest?

c. What is the future value of 15 deposits of $ 2,000 each made at the beginning of each period and compounded at 10 % ? (Future value as of the end of the fifteenth period.)

d. What is the present value of six receipts of $ 1,000 each received at the beginning of each period, discounted at 9 % compounded interest?

E6.5 (LO 4) (Computation of Present Value) Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods.

a. $ 30,000 receivable at the end of each period for 8 periods compounded at 12 %.

b. $ 30,000 payments to be made at the end of each period for 16 periods at 9 %.

c. $ 30,000 payable at the end of the seventh, eighth, ninth, and tenth periods at 12 %.

Answer 1

Answer 2

the top one is incorrect