Question

Determine the present value of the following single amounts (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.): Future Amount i = n = Present Value

1. $20,000 7% 10

2. $14,000 8% 12

3. $25,000 12% 20

4. $40,000 10% 8

Answer 1

Case 1:

Present Value = Future Value * PV of $1 (i%, n)
Present Value = $20,000 * PV of $1 (7%, 10)
Present Value = $20,000 * 0.5083
Present Value = $10,166

Case 2:

Present Value = Future Value * PV of $1 (i%, n)
Present Value = $14,000 * PV of $1 (8%, 12)
Present Value = $14,000 * 0.3971
Present Value = $5,559

Case 3:

Present Value = Future Value * PV of $1 (i%, n)
Present Value = $25,000 * PV of $1 (12%, 20)
Present Value = $25,000 * 0.1037
Present Value = $2,593

Case 4:

Present Value = Future Value * PV of $1 (i%, n)
Present Value = $40,000 * PV of $1 (10%, 8)
Present Value = $40,000 * 0.4665
Present Value = $18,660