Question

Problem 4-4 (add the used formula)
PRESENT VALUE CALCULATIONS
What is the present value of the following future amounts?
	Annual
Future Amount (SAR)	Interest	Years
900,000	5%	5
478,000	4%	12
279,000	12%	4
440,000	7%	15

Answer 1

Formula used: PV = FV/(1 + r)^n
Future Amount (SAR)	Annual Interest	Years	Present value
900,000	5%	5	PV = 900,000/(1 + 0.05)^5 PV = $705,173.549821613
478,000	4%	12	PV = 478,000/(1 + 0.04)^12 PV = $298,557.389699271
279,000	12%	4	PV = 279,000/(1 + 0.12)^4 PV = 298,557.389699271
440,000	7%	15	PV = 440,000/(1 + 0.07)^15 PV = $159,476.248642638

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