Homework Answers
Present value formula:
PV = FV / (1+r)n
Where FV = Future value, r = rate of interest, n = number of years.
Answer(a): PV = 8400 / (1+.07)12
PV = $3729.700457 or $3729.70 is the answer.
Answer(b): PV = 18700 / (1+.08)6
PV = $11784.172022 or $11784.17 is the answer.
Answer(c): PV = 28200 / (1+.10)18
PV = $5072.017875 or $5072.02 is the answer.
(Figures in image are little blurred, I might get some numbers wrong and please rate.)
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