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P4A.8 (similar to) Question Help The following table. . lists the lump sum payout, the timing of that payout, and the discoun
11% Investment Future Sum Discount Rate Payout at End of Year $5,000 7% $32,000 2% $11,000 $150,000 6% $40,000 25% (Click on
P4A. 10 (similar to) 3 Question Help A Florida state savings bond can be converted to $1.000 at maturity 9 years from now. If
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Answer #1
FV = Future Value
PV = Present Value
r = rate of interest
n= no of period
A) PV = FV/ (1 + r )^n
PV = 5000 / ((1 + 7%)^2)
PV = 4367.19
B) PV = FV/ (1 + r )^n
PV = 32000 / ((1 + 2%)^21)
PV = 21112.83
C) PV = FV/ (1 + r )^n
PV = 11000 / ((1 + 11%)^16)
PV = 2071.21
D) PV = FV/ (1 + r )^n
PV = 150000 / ((1 + 6%)^7)
PV = 99758.57
E) PV = FV/ (1 + r )^n
PV = 40000 / ((1 + 25%)^8)
PV = 6710.89
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