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.):

FV : 20000

i=7%

n=10

present value= ??

FV : 14000

i=8%

n=12

present value= ??

FV : 25000

i=12%

n=20

present value= ??

FV : 40000

i=10%

n=8

present value= ??

Answer 1

1. Present Value = FV * (i,n)

Given that Future Value = 20000 , i=7% , n=10

Present Value = 20000*(7%,10)

= 20000*0.50835

=$10167

2. Present Value = FV * (i,n)

Given that Future Value = 14000 , i=8% , n=12

Present Value = 14000*(8%,12)

= 14000*0.39711

=$5559.54

3. Present Value = FV * (i,n)

Given that Future Value = 25000 , i=12% , n=20

Present Value = 25000*(12%,20)

= 25000*0.10367

=$2591.75

4. Present Value = FV * (i,n)

Given that Future Value = 40000 , i=10% , n=8

Present Value = 40000*(10%,8)

= 40000*0.46651

=$18660.4