a) Present value = fave value * 1 /(1+rate)number of periods , where r =discount rate ,number of periods = years
= $8300 * 1 /(1+0.05)13
= $8300 * 1 / (1.05)13
= $8300 * 0.530321
= $4401.66
b) Present value = fave value * 1 /(1+rate)number of periods
= $18600 * 1 /(1+0.06)3
= $18600 * 1 /(1.06)3
= $18600 * 0.839619
= $15616.91
c) Present value = fave value * 1 /(1+rate)number of periods
= $28100* 1 /(1+0.08)9
= $28100* 1 /(1.08)9
= $28100 * 0.500249
= $14057
What is the present value of the following? Use Appendix B as an approximate answer, but...
What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $8,700 in 9 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value b. $17,800 in 4 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value C. $27,500 in 12 years at 11...
What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $7,800 in 6 years at 10 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. $16,500 in 3 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c. $25,700 in 9 years at 8 percent? (Do...
What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $8,600 in 5 years at 10 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. $17,600 in 3 years at 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c. $27,100 in 9 years at 7 percent? (Do not...
How much would you have to Invest today to receive the following? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. $7,800 each year for 20 years at 6 percent. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) Present value 553,000 each year for 25 years at 12 percent. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.)...
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a. What is the present value of $240,000 to be received after 30 years with a 16 percent discount rate? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. Would the present value of the funds in part a be enough to buy a $2,800 concert ticket? No Yes
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