menu
Hit Return to see all results
Chapter 29, Problem 1WNG
BuyFindarrow_forward

### Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

#### Solutions

Chapter
Section
BuyFindarrow_forward

### Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

# Compute the following: a. The present value of $25,000 each year for 4 years at a 7 percent interest rate b. The present value of$152,000 each year for 5 years at a 6 percent interest rate c. The present value of $60,000 each year for 10 years at a 6.5 percent interest rate (a) To determine Calculate the present value. Explanation The present value (PV) can be calculated using the formula given below: PV=âˆ‘An(1+i)nÂ Â Â Â Â Â Â Â (1) Here An is the actual amount of income. Â i is the interest rate. n is the number of years in the future. Since An is$25,000, i is 7%, and n is 4 years, the value of PV can be calculated using Equation-1 as follows:

PV=$25,000(1+0.07)1+$25,000(1+0

(b)

To determine

Calculate the present value.

(c)

To determine

Calculate the present value.

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

## Additional Business Solutions

#### Find more solutions based on key concepts

Show solutions add

#### Why should policymakers think about incentives?

Principles of Microeconomics (MindTap Course List)

#### If the United States imports more goods from abroad than it exports, foreigners will tend to have a surplus of ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)