Question

7- Compute the present value for the following: Future Value: 140987 Years: 26 Interest rate: 11 Provide answer with two decimals, i.e. 32.16)

8- Solve for the unknown number of years: (Use two decimals, i.e. 32.16) PV: 2,589 FV: 80,008 Rate:8% # Years:

9- Solve for the unknown number of years: (Use two decimals, i.e. 32.16) PV: 2,555 FV: 62,387 Rate:16% # Years:

10- Solve for the unknown number of years: (Use two decimals, i.e. 32.16) PV: 3,590 FV: 21,073

Answer 1

7. Present value = FV /(1+r) ^ n

Future Value: 140987

Years(n): 26

Interest rate(r): 11 %

= 140987 / (1+11%)^26

= 9349..35

8. Use excel function nper

=NPER(8%,,-2589,80008,0)

= 44.6

9. Use excel function nper

=NPER(0.16,,-2555,62387,0)

= 21.5288 rounded off to 21.53

10. Use excel function nper

=NPER(0.15,,-3590,21073,0)

= 12.66325 approximated to 12.66 years