FUND OF FINANCIAL ACTNG (LL) W/CNCT COD
FUND OF FINANCIAL ACTNG (LL) W/CNCT COD
6th Edition
ISBN: 9781260692815
Author: PHILLIPS
Publisher: MCG
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Chapter C, Problem 5ME
To determine

To compute: the present value of $500,000 to be paid in 10 years with an interest rate of 8% with the help of excel.

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Using a present value table, your calculator, or a computer program present value function, answer the following questions: See Table 6-4 and Table 6-5 (Use the appropriate factor by clicking on the appropriate Table links.)Required: What is the present value of nine annual cash payments of $2,000, to be paid at the end of each year using an interest rate of 4%? What is the present value of $20,000 to be paid at the end of 22 years, using an interest rate of 16%? How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of 10 years, assuming that the account will earn 8% interest? How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of 12 years, assuming that the account will earn 12% interest? Assume that a machine was purchased for $55,900. Cash of $15,300 was paid, and a four-year, 12% note payable was signed for the balance. Prepare the horizontal model and…
Present Value ComputationYou will receive $4,500 in 3 years. What is the present value if you can earn 8% interest compounded annually?Use Excel or a financial calculator for computation. Round your answer to nearest dollar. $Answer
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