Question

Will somebody please help me get this figured out for B....please show me the formula

Name: Instructor: Intermediate Accounting Primer on Using Excel in Accounting Date: Course: E6-3 (Computation of Future Values and Present Values) Using the appropriate interest table or Exce formula, answer each of the following questions: (Each case is independent of the others.) -periods at (a) What is the future value of compounded interest? at the end of- $7,000 5 8% te Fomula (b) What is the present value of 7,000 due 8 periods hence discounted at 1 1 % ate (c) What is the future value of 15 periodic payments of $7000 each made at 10% |? Text as Formula d) What is the present value of $7,000 to be received at the end of each of 20 periods, discounted at orm

Answer 1

Answer a.

Future Value = Present Value * FV of $1 (i%, n)
Future Value = $7,000 * FV of $1 (8%, 5)
Future Value = $7,000 * 1.4693
Future Value = $10,285

Answer b.

Present Value = Future Value * PV of $1 (i%, n)
Present Value = $7,000 * PV of $1 (11%, 8)
Present Value = $7,000 * 0.4339
Present Value = $3,037

Answer c.

Future Value = Periodic Payment * FVA of $1 (i%, n)
Future Value = $7,000 * FVA of $1 (10%, 15)
Future Value = $7,000 * 31.7725
Future Value = $222,408

Answer d.

Present Value = Periodic Payment * PVA of $1 (i%, n)
Present Value = $7,000 * PVA of $1 (5%, 20)
Present Value = $7,000 * 12.4622
Present Value = $87,235