Question
In: Finance
For each of the following, compute the present value: (Do not round intermediate calculations and round...
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 | % | $ | 17,828 | |||||||
| 3 | 10 | 42,017 | ||||||||||
| 15 | 13 | 795,382 | ||||||||||
| 20 | 12 | 652,816 | ||||||||||
Solutions
Expert Solution
Present value=Cash flows*Present value of discounting factor(rate%,time period)
a.Present value=17828/1.05^11
=17828*0.584679289
=$10423.66(Approx)
b.Present value=42017/1.1^3
=42017*0.751314801
=$31567.99(Approx)
c.Present value=795382/1.13^15
=795382*0.159890753
=$127174.23(Approx)
d.Present value=652816/1.12^20
=652816*0.103666765
=$67675.32(Approx)
jeff jeffy answered 2 years agoRelated Solutions
For each of the following, compute the future value: (Do not round intermediate calculations and round...
For each of the following, compute the future 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
$
2,450
10
13
%
$
9,853
23
8
103,305
17
6
241,382
33
4
For each of the following, compute the future value: (Do not round intermediate calculations and round...
For each of the following, compute the future 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
$
1,850
11
13
%
$
7,952
7
9
68,355
14
12
175,796
8
6
Complete the following using present value. (Use the Tableprovided.) (Do not round intermediate calculations. Round...
Complete the following using present value. (Use the Table
provided.) (Do not round intermediate calculations. Round
the "PV factor" to 4 decimal places and final answer to the nearest
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Complete the following using present value. (Use the Table provided.) (Do not round intermediate calculations. Round...
Complete the following using present value. (Use the Table
provided.) (Do not round intermediate calculations. Round
the "PV factor" to 4 decimal places and final answer to the nearest
cent.)
Amount desired at end of period
Length of time
Rate
Compounded
On PV Table
PV factor used
PV of amount desired at end of period
Period used
Rate used
$10,700
4 years
12%
Monthly
%
$
Complete the following using present value. (Use the Table provided.) (Do not round intermediate calculations. Round...
Complete the following using present value. (Use the Table
provided.) (Do not round intermediate calculations. Round the "PV
factor" to 4 decimal places and final answer to the nearest cent.)
Amount desired at end of period Length of time Rate Compounded On
PV Table PV factor used PV of amount desired at end of period
Period used Rate used $10,700 4 years 12% Monthly % $
For each of the following annuities, calculate the annuity payment. (Do not round intermediate calculations and...
For each of the following annuities, calculate the annuity
payment. (Do not round intermediate calculations and round
your answers to 2 decimal places, e.g., 32.16.)
FV is 24,050, Years 8, and Interest Rate is 4%, Annuity
Paymernt?
FV is 950,000, Years 35, and Interest Rate is 6%, Annuity
Payment?
FV is 760,000, Years 21, and Interest Rate is 7%, Annuity
Payment?
FV is 130,000, Years 12, and Interest Rate is 3%, Annuity
Payment?
Please show answers using process on a...
1. Find the EAR in each of the following cases. (Do not round intermediate calculations and...
1. Find the EAR in each of the following cases. (Do not
round intermediate calculations and enter your answers as a percent
rounded to 2 decimal places, e.g., 32.16. Use 365 days in a
year.)
Stated Rate (APR)
Number of Times
Compounded
Effective Rate (EAR)
12.50
%
Quarterly
%
13.50
Monthly
%
18.50
Daily
%
14.50
Semiannually
%
2. Find the APR, or stated rate, in each of the following cases.
(Do not round intermediate calculations and enter your
answers...
Solve for the unknown interest rate in each of the following: (Do not round intermediate calculations...
Solve for the unknown interest rate in each of the following:
(Do not round intermediate calculations and enter your
answers as a percent rounded to 2 decimal places, e.g.,
32.16.)
Present Value
Years
Interest Rate
Future Value
$
785
4
%
$
1,521
975
5
1,858
22,000
16
148,832
77,300
19
326,815
For each of the following annuities, calculate the annual cash flow. (Do not round intermediate calculations...
For each of the following annuities, calculate the annual cash
flow. (Do not round intermediate calculations and round your
answers to 2 decimal places, e.g., 32.16.)
Cash Flow Present Value Years Interest Rate
$ $ 31,900 6 12 %
28,900 8 10
152,000 15 15
221,700 15 14
For each of the following annuities, calculate the annual cash flow. (Do not round intermediate calculations...
For each of the
following annuities, calculate the annual cash flow. (Do
not round intermediate calculations and round your answers to 2
decimal places, e.g., 32.16.)
Cash Flow
Present Value
Years
Interest Rate
$
$
32,000
6
7
%
29,050
8
5
153,500
16
10
223,500
21
9
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