Question

What is the future value of $7,890 at the end of 5 periods at 8% compounded interest?

What is the present value of $7,890 due 9 periods hence, discounted at 6%?

What is the future value of 16 periodic payments of $7,890 each made at the end of each period and compounded at 10%?

What is the present value of $7,890 to be received at the end of each of 19 periods, discounted at 5% compound interest?

Answer 1

1)	Future Value	=	Present value * (1+i)^n			Where,
		=	7890*(1+0.08)^5			i	=	8%
		=	$     11,593.00			n	=	5
2)	Present value	=	Future value * (1+i)^-n			Where,
		=	7890*(1+0.06)^-9			i	=	6%
		=	$        4,670.08			n	=	9
3)	Future Value	=	Annual cash flow	*	Future value of annuity of 1
		=	$        7,890.00	*	35.94973
		=	$ 2,83,643.37
	Working:
	Future value of annuity of 1	=	(((1+i)^n)-1)/i			Where,
		=	(((1+0.10)^16)-1)/0.10			i	=	10%
		=	35.94972986			n	=	16
4)	Present Value	=	Annual cash flow	*	Present value of annuity of 1
		=	$        7,890.00	*	12.08532
		=	$     95,353.18
	Working:
	Present value of annuity of 1	=	(1-(1+i)^-n)/i			Where,
		=	(1-(1+0.05)^-19)/0.05			i	=	5%
		=	12.08532086			n	=	19