Question

6. For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.)

Present Value   Future Value   i   n
1. ? $76,000   11.0%   7
2. $26,933 $90,000 ? 14
3. $17,670   $49,000   12.0% ?
4.   $39,710   $190,000 ? 15
5.   $24,439 ? 11.0%   12

Answer 1

	pv	fv	i	n
1	36606	76000	11	7
2	26933	90000	9	14
3	17670	49000	12	9
4	39710	190000	11	15
5	24439	85499	11	12

1

pv of 1$	0.481658
fv	76000
pv	76000*0.481658
pv of 76000	36606

2

PV	=	FV*[Pvfactor for n years and I interest)
26933	=	90000 for n= 14 and I = ?
26933/90000	=	pv factor for n = 14 years and I = ?
0.299256	=	pv factor for n = 14 years and I = ?
closest to pv factor for i=9%

3

PV	=	FV*[Pvfactor for n years and I interest)
17670	=	49000*(pv factory for n=?, I =12)
0.360612	=	(pv factory for n=?, I =12)
closest to pv factor for n = 9

4

PV	=	FV*[Pvfactor for n years and I interest)
39710	=	190000*(pv factory for n=15, I =?
0.209	=	(pv factory for n=15, I =?)
closest to pv factor for i= 11%

5

FV of 1$	3.49845
PV	24439
FV	24439*3.49845
FV of 76000	85499

HOPE THIS WAS HELPFUL. A LOT OF EFFORTS HAVE BEEN PUT INTO THIS TO MAKE IT EASILY UNDERSTANDABLE.

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