Problem 4-3 Calculating Present Values [LO 2] For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years Interest Rate Future Value $ 11 5 % $ 18,228 3 10 42,417 15 13 799,382 20 12 656,816
To find the PV of a lump sum, we use:
PV = FV / (1 + r)t
PV = $18,228 / (1.05)11 = $10,657.53
PV = $42,417 / (1.10)3 = $31,868.52
PV = $799,382 / (1.13)15 = $127,813.79
PV = $656,816 / (1.12)20 = $68,089.99
Problem 4-3 Calculating Present Values [LO 2] For each of the following, compute the present value:...
Problem 5-3 Calculating Present Values [LO2] For each of the following, compute the present value (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): Present Value Years Interest Rate Future Value 14 8 % $15,551 5 14 52,557 30 15 887,073 35 8 551,164
Problem 4-25 Calculating Present Values (LO 2] You have decided that you want to be a millionaire when you retire in 44 years. a. If you can earn an annual return of 11.34 percent, how much do you have to invest today? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What if you can earn an annual return of 5.67 percent? (Do not round Intermediate calculations and round your answer to 2...
Problem 5-3 Calculating Present Values [LO2] For each of the following, compute the present value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16): 13 4 29 40 7% 13 14 $16,051 57,557 892,073 556,164
Problem 4-2 Calculating Future Values a. Compute the future value of $1,000 compounded annually for 20 years at 7 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ b. Compute the future value of $1,000 compounded annually for 15 years at 8 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ c. Compute the future value of $1,000 compounded annually...
For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years 12 Interest Rate 4 % 9 12 11 4 16 21 Future Value $ . 42,317 798,382 655,816 R
value: 1.00 points Problem 5-4 Calculating Annuity Present Values [LO An investment offers $7,600 per year for 16 years, with the first payment occurring one year from now. Assume the required return is 9 percent. What is the value of the investment today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value What would the value be if the payments occurred for 41 years? (Do not round intermediate calculations and round your...
For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Interest Rate Present Value Years Future Value 18,828 12 43,017 13 15 805,382 662,816 18 14
QUESTION #3 For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years Interest Rate 4 % - 12 4 16 21 Future Value $ 18,128 42,317 798,382 655,816 12 11
For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Interest Rate Years 10 2 11 Future Value 17,528 41,717 792,382 649,816 14 13 19 13
For each of the following, compute the present value: (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present Value Years Interest Rate Future Value ? 15 7 % $19,415 ? 8 11 $47,382 ? 13 10 $312,176 ? 25 13 $629,381