a. 20 years at 8 percent. (Do not round intermediate calculati answer to 2 decimal places, e.g., 32.16.) b. 15 years at 11 percent. (Do not round intermediate calculatic answer to 2 decimal places, e.g., 32.16.) C. 25 vears at 8 percent (Do not round intermediate calculeti

a. 20 years at 8 percent. (Do not round intermediate calculati answer to 2 decimal places, e.g., 32.16.) b. 15 years at 11 percent. (Do not round intermediate calculatic answer to 2 decimal places, e.g., 32.16.) C. 25 vears at 8 percent (Do not round intermediate calculeti

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

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Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

please send correct answer Q3

Compute the future value of $2,000 compounded annually for:
a. 20 years at 8 percent. (Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
b. 15 years at 11 percent. (Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
c. 25 years at 8 percent. (Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
a. Future value
b. Future value
c. Future value

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