Determine the present value of $310,000 to be received in three years, using an interest rate of 5.5%, compounded annually. Use the present value table in Exhibit 8. Round to the nearest whole dollar.
Determine the present value of $220,000 to be received at the end of each of four years, using an interest rate of 6%, compounded annually, as follows:
a. By successive computations, using the present value table in Exhibit 4. Round to the nearest whole dollar.
First year | $ |
Second Year | $ |
Third Year | $ |
Fourth Year | $ |
Total present value | $ |
b. By using the present value table in Exhibit
5. Round to the nearest whole dollar.
$
On January 1, 2016, you win $4,080,000 in the state lottery. The $4,080,000 prize will be paid in equal installments of $510,000 over 8 years. The payments will be made on December 31 of each year, beginning on December 31, 2016. If the current interest rate is 5%, determine the present value of your winnings. Use Table 2. Round to the nearest whole dollar.
Determine the present value of $310,000 to be received in three years, using an interest rate...
Thank you for the help! Present Value of an Annuity Determine the present value of $310,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar First year Second Year Third Year Fourth Year Total present value b. By using the present value of an annuity of $1 table...
Present Value of an Annuity Determine the present value of $130,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year $ Second Year $ Third Year $ Fourth Year $ Total present value $ b. By using the present value of an annuity of $1 table...
Determine the present value of $200,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value table in Exhibit 8. Round to the nearest whole dollar. First year $ Second Year $ Third Year $ Fourth Year $ Total present value $ b. By using the present value table in Exhibit 10. Round to the nearest whole dollar. $ c. Why...
Present Value of an Annuity Determine the present value of $300,000 to be received at the end of each of four years, using an interest rate of 10 %, compounded annually, as follows a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year Second Year Third Year Fourth Year Total present value b. By using the present value of an annuity of $1 table in Exhibit 7. Round...
EXHIBIT 5 EXHIBIT 7 Present Value of an Annuity Determine the present value of $260,000 to be received at the end of each of four years, using an interest rate of 10%, compounded annually, as follows: a. By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest whole dollar. First year Second Year Third Year Fourth Year Total present value b. By using the present value of an annuity of $1 table in...
Present Value of Amounts DueAssume that you are going to receive $700,000 in 10 years. The current market rate of interest is 5.5%.a. Using the present value of $1 table in Exhibit 5, determine the present value of this amount compounded annually. Round to the nearest whole dollar.$fill in the blank 1b. Why is the present value less than the $700,000 to be received in the future?The present value is less due to the compounding of interest over the 10 years.
Calculator Present Value of Amounts Due Determine the present value of $730,000 to be received in three years, using an interest rate of 4.5%, compounded annually. Use the present value table in Exhibit 8. Round to the nearest whole dollar. 32,851 X Feedback Check My Work Review the time value of money concept.Recall that the time value of money concept recognizes that cash received today is worth more than the same amount of cash to be received in the future.
Present Value of an Annuity On January 1 you win $2,640,000 in the state lottery. The $2,640,000 prize will be paid in equal installments of $220,000 over 12 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 7%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.
Present Value of an Annuity On January 1, you win $1,360,000 in the state lottery. The $1,360,000 prize will be paid in equal installments of $170,000 over 8 years. The payments will be made on December 31 of each year, beginning on December 31. If the current interest rate is 5%, determine the present value of your winnings. Use the present value tables in Exhibit 7. Round to the nearest whole dollar.
Present Value of an Annuity 1) On January 1, 2016, you win $2,600,000 in the state lottery. The $2,600,000 prize will be paid in equal installments of $260,000 over 10 years. The payments will be made on December 31 of each year, beginning on December 31, 2016. If the current interest rate is 5%, determine the present value of your winnings. Use Table 2. Round to the nearest whole dollar. $ 2) Compute Bond Proceeds, Amortizing Premium by Interest Method,...