Question

What is the value today of a money machine that will pay $1,417.00 every six months for 27.00 years? Assume the first payment is made six months from today and the interest rate is 11.00%.

What is the value today of a money machine that will pay $4,146.00 per year for 35.00 years? Assume the first payment is made today and that there are 35.0 total payments. The interest rate is 6.00%.

Derek will deposit $3,988.00 per year for 19.00 years into an account that earns 6.00%. The first deposit is made next year. How much will be in the account 19.0 years from today?

ROUND TO 2 DECIMAL PLACES PLEASE.

Answer 1

Q1)
	we have to use financial calculator to solve this problem
	Put in calculator -
	I	=11%/2	5.50%
	FV		0
	PMT		-1417
	N	=27*2	54
	Compute PV		$24,333.51
	present value =			$24,333.51
Q2)
	we have to use financial calculator to solve this problem
	Set the calculator at BEGIN mode as first payment is made today
	Put in calculator -
	I		6.00%
	FV		0
	PMT		-4146
	N		35
	Compute PV		$63,716.31
	present value =			$63,716.31
Q3
	we have to use financial calculator to solve this problem
	Put in calculator -
	I		6.00%
	PV		0
	PMT		-3988
	N		19
	Compute PV		$134,634.85
	present value =			$134,634.85