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 present value of
$800
to be received
10
years from now discounted back to the present at
11
percent?
$nothing
(Round to the nearest cent.)b. What is the present value of
$400
to be received
8
years from now discounted back to the present at
9
percent?
$nothing
(Round to the nearest cent.)c. What is the present value of
$1,100
to be received
12
years from now discounted back to the present at
3
percent?
$nothing
(Round to the nearest cent.)d. What is the present value of
$1,200
to be received
6
years from now discounted back to the present at
19
percent?
$nothing
(Round to the nearest cent.)
| Year | Future Value | Interest rate | Discount factor | Present Value | |||||||
| a | b | c | d=(1+c)^-a | e=b*d | |||||||
| a. | 10 | $ 800 | 11% | 0.352184 | $ 281.75 | ||||||
| b. | 8 | $ 400 | 9% | 0.501866 | $ 200.75 | ||||||
| c. | 12 | $ 1,100 | 3% | 0.70138 | $ 771.52 | ||||||
| d. | 6 | $ 1,200 | 19% | 0.352142 | $ 422.57 | ||||||
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