Question

What is the present value of the following? $8,000 in 13 years at 8 percent? $18,000...

What is the present value of the following? $8,000 in 13 years at 8 percent? $18,000 in 7 years at 9 percent? $27,800 in 18 years at 10 percent?

Homework Answers

Answer #1

The Present Value is calculated by using the following formula

Present Value = Future Value / (1 + r)n

Where, “r” is the Interest Rate and “n” is the number of periods

Present Value of 8,000 in 13 years at 8 percent

Present Value = Future Value / (1 + r)n

= $8,000 / (1 + 0.08)13

= $8,000 / 2.71962

= $2,941.58

Present Value of $18,000 in 7 years at 9 percent

Present Value = Future Value / (1 + r)n

= $18,000 / (1 + 0.09)7

= $18,000 / 1.82804

= $9,846.62

Present Value of $27,800 in 18 years at 10 percent

Present Value = Future Value / (1 + r)n

= $27,800 / (1 + 0.10)18

= $27,800 / 5.55992

= $5,000.07

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Present value​) What is the present value of the following future​ amounts? a. ​$800 to be...
Present value​) What is the present value of the following future​ amounts? a. ​$800 to be received 10 years from now discounted back to the present at 11 percent.b. ​$400 to be received 8 years from now discounted back to the present at 9 percent.c. ​$1,100 to be received 12 years from now discounted back to the present at 3 percent.d. ​$1,200 to be received 6 years from now discounted back to the present at 19 percent.a. What is the...
Calculate Present Values: For each of the following, compute the present value: Years Interest Rate Future...
Calculate Present Values: For each of the following, compute the present value: Years Interest Rate Future Value 8 7 $13,827 13 15 43,852 17 11 725,380 26 18 590,710 **PLEASE PROVIDE EXCEL FORMULAS
2- Compute the future value for the following: Present Value: 107954 Years: 13 Interest rate: 10...
2- Compute the future value for the following: Present Value: 107954 Years: 13 Interest rate: 10 (Provide answer to two decimals, i.e. 32.16) 3- Compute the future value for the following: Present Value: 62132 Years: 11 Interest rate: 6 (Provide answer to two decimals, i.e. 32.16) 4- Compute the future value for the following: Present Value: 203739 Years: 32 Interest rate: 8 (Provide answer to two decimals, i.e. 32.16) 5- Compute the present value for the following: Future Value: 230374...
What is the present equivalent of $18,000 to be received in 15 years when the interest...
What is the present equivalent of $18,000 to be received in 15 years when the interest rate is 7% per year?
What is the present value of $2,500 per year for 10 years discounted back to the...
What is the present value of $2,500 per year for 10 years discounted back to the present at 9 percent? Q) The present value of $2,500 per year for 10 years discounted back to the present at 9 percent is__? Please show your work.
What is the present value of $2,000 a year at a discount rate of 8 percent...
What is the present value of $2,000 a year at a discount rate of 8 percent if the first payment is received 4 years from now and you receive a total of 20 annual payments?
What is the present value of the following series of cash payments: $8,000 per year for...
What is the present value of the following series of cash payments: $8,000 per year for four consecutive years starting one year from today, followed by annual cash payments that increase by 2% per year in perpetuity (i.e. cash payment in year 5 is $8,000*1.02, cash payment in year 6 is $8,000*1.022, etc.)? Assume the appropriate discount rate is 5%/year. ( PLZ USE EXCEL TO ANSWER IT)
For each of the following, compute the future value Present value $1,950 $8,152 $70,355 $177,796 Years...
For each of the following, compute the future value Present value $1,950 $8,152 $70,355 $177,796 Years 10 8 15 6 Interest Rate 14% 8% 13% 5% Future Value ?
Find the present value of the following annuity due: $375 per month, for ten years, at...
Find the present value of the following annuity due: $375 per month, for ten years, at 9 percent simple rate. Make sure to show your work A. Find the future value of the following annuity: $375 per month, for fifteen years, at 8 percent simple rate.
What is the present value of $3,500 per year for 9 years discounted back to the...
What is the present value of $3,500 per year for 9 years discounted back to the present at 11 percent? The present value of $3,500 per year for 9 years discounted back to the present at 11 percent is__$ Please show your work.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT