What is the PV of a future sum if: FV = 15000 # of periods =...
What is the PV of a future sum if: FV = 15000 # of periods = 12 Interest rate = 5% Compounding times per period = 12
Homework Answers
Ans $ 14269.92
| FV = | Future Value |
| PV = | Present Value |
| r = | rate of interest |
| n= | no of period |
| FV = | PV (1 + r )n |
| 15000 = | PV*(1+5%/12)^12 |
| 15000 = | 1.05116189788173 * PV |
| PV = | 15000 / 1.05116189788173 |
| PV = | 14269.92 |
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