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Compute the present value if
The PV of an investment refers to the worth of the cash flows of the investment discounted to the present at an assumed rate. It allows investors to realize the actual value of their investments.
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- Calculate Present Values For each of the following, compute the present value: Present Value Years Interest Rate Future Value 6 7% $13,827 11 15 43,852 19 11 725,380 29 18 590,710Compute the number of years (t) if future value (FV) = $5575, present value (FV) = $1812, and interest rate (r) = 9.1%,For each of the following, compute the future value: Present Value Years Interest Rate Future Value $ 2,250 4 18% 9,310 9 6 76,355 15 12 183,796 21 8
- Compute the interest rate if future value (FV) = $7198, present value (FV) = $2694, and number of years (t) = 9Calculate the future value if present value (PV) = $1,020, interest rate (r) = 11.9% and number of years (t) = 15If the stated interest rate is 8%, number of years is 3, and market interest rate is 12% compounded quarterly, then the present value factor of the lumpsum is:
- For the following exercise, use the compound interest formula, A(t) = P 1 + r n nt , where money is measured in dollars.After a certain number of years, the value of an investment account is represented by the expression 10,950 1 + 0.03 2 24 . How many years had the account been accumulating interest? yrFor 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) Present Value Future Value i n1. ? $ 40,000 10% 52. $ 36,289 65,000 ? 103. 15,884 40,000 8 ?4. 46,651 100,000 ? 85. 15,376 ? 7 20Compute the following with the data provided: (Show sufficient work with formulas used and all the steps involved ) A=$12, 500.00 per Quarter r=7.5% N=12 years Present Worth if the interest is compounded monthly? Future Value if the interest is compounded Quarterly: Present Worth if the interest is compounded continuously?
- Determine the present value, P, you must invest to have the future value, A, at simple interest rate r after time t. Round answer to the nearest dollar. A=$878.00, r=13%, t=9 monthsTabulate the future value factor for interest rates of 5%, 10%, and 15% for n’s from 0 to 20 (in 5’s).For each of the following cases, indicate (a) to what interest rate columns and (b) what number of periods you would refer to in looking up the future value factor. (1) In Table 1 (future value of 1): \table||,Annual Rate, \table[[Number of], [Years Invested]], Compounded], [Case A,5%,5, Annually], [Case 8,8%, 4, Semiannually]]\ table[(a)..(b)], [Case A,%, periods,], [Case B,%, periods,,]] (2) In Table 2 (future value of an annuity of 1): \ table[],Annual Rate,\table[[Number of], [Years Invested]], Compounded], [Case A,4%, 12, Annually), (Case B,6%, 5,Semiannually]] \table[[,(a), (b)].[..%,periods], [Case A,%, periods,]]