Question

Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.) (a) Click here to view factor tables What is the future value of $9,540 at the end of 5 periods at 8% compounded interest? (Round factor values to 5 decimal places, eg. 1.25124 and final answer to O decimal places, eg. 458,581.) The future value $ e Textbook and Media Save for Later Attempts: 0 of 15 used Submit Answer (b) Click here to view factor tables What is the present value of $9,540 due 6 periods hence, discounted at 6%? (Round factor values to 5 decimal places, eg. 1.25124 and final answer to 0 decimal places, eg. 458,581.) The present value $ e Textbook and Media

Answer 1

a
Amount	9540
X FV factor	1.46933	=(1.08)^5
The future value	14017
b
Amount	9540
X PV factor	0.70496	=1/1.06^6
The present value	6725
c
Amount	9540
X FV factor	35.94973	=((1.10)^16-1)/0.10
The future value	342960
d
Amount	9540
X PV factor	11.27407	=(1-(1.05)^-17)/0.05
The present value	107555