What is the present value of a $2,000 payment made in five years
when the discount rate is 9 percent? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)
Question: Determining the present value of bonds payable
Interest rates determine the present value of future amounts. (Round to the nearest
dollar.)
Requirements
1. Determine the present value of 10-year bonds payable with face value of $86,000
and stated interest rate of 14%, paid semiannually. The market rate of interest is
14% at issuance.
2. Same bonds payable as in Requirement 1, but the market interest rate is 16%.
3. Same bonds payable as in Requirement 1, but the...
Payment
Years
Interest Rate (Annual)
Future Value (Payment made on last day
of period)
Future Value (Payment made on first day
of period)
$283
15
15
%
6,155
10
12
76,084
7
14
168,932
11
5
Compute the future values of the following annuities first
assuming that payments are made on the last day of the period and
then assuming payments are made on the first day of the period:
(Do not round intermediate calculations. Round your answers
to 2...
Calculating Interest Rates. Solve for the
unknown interest rate in each of the following.
PRESENT VALUE
YEARS
INTEREST RATE
FUTURE VALUE
$ 812
9
$ 2 491
1 120
6
2 829
19 500
21
252 942
66 500
18
423 925
Calculating Interest Rates Solve for the unknown interest rate
in each of the following:
Present Value Years Future Value
189 4 287
410 8 887
51,700 14 152,184
21,400 27 538,600
What is the future value of a $500 annuity payment over seven
(7) years if interest rates are nine (9) percent per year?Group of answer choicesA. $3,761.67B. $5,514.24C. $4,600.22D. $4,494.44E. $6,200.91