Question

1. If you receive $29 each quarter for 19 years and the discount rate is 0.05, what is the present value?

(show the process and can use financial calculator)

2. If you receive $99 each quarter for 17 years and the discount rate is 0.05, what is the future value?

(show the process and can use financial calculator)

3. If you receive $98 each month for 12 months and the discount rate is 0.07, what is the present value?

(show the process and can use financial calculator)

4. If you receive $116 each month for 28 years and the discount rate is 0.08, what is the present value?

(show the process and can use financial calculator)

5. If you receive $136 each 6 months for 3 years and the discount rate is 0.03, what is the future value?

(show the process and can use financial calculator)

Answer 1

1). To find the PV, we need to put the following values in the financial calculator:

INPUT	19*4=76	5/4=1.25		29	0
TVM	N	I/Y	PV	PMT	FV
OUTPUT			-1,417.46

Hence, PV = $1,417.46

2). To find the FV, we need to put the following values in the financial calculator:

INPUT	17*4=68	5/4=1.25	0	99
TVM	N	I/Y	PV	PMT	FV
OUTPUT					-10,512.63

Hence, FV = $10,512.63

3). To find the PV, we need to put the following values in the financial calculator:

INPUT	12	7/12=0.58		98	0
TVM	N	I/Y	PV	PMT	FV
OUTPUT			-1,132.60

Hence, PV = $1,132.60

4). To find the PV, we need to put the following values in the financial calculator:

INPUT	28*12=336	8/12=0.67		116	0
TVM	N	I/Y	PV	PMT	FV
OUTPUT			-15,533.80

Hence, PV = $15,533.80

5). To find the FV, we need to put the following values in the financial calculator:

INPUT	3*2=6	3/2=1.5	0	136
TVM	N	I/Y	PV	PMT	FV
OUTPUT					-847.22

Hence, FV = $847.22