Question

In this assignment you will be working with a dollar value of $1,000,000 to calculate present value, present value of an annuity, future value and future value of an annuity. In each of the four parts of the assignment, you will provide a scenario in which you personally or a business would need to calculate these values. Personal examples are planning for retirement, planning for education or winning the lottery. Business examples are buying a new delivery truck, bond issues, purchasing a new building or opening a start-up business. The example you use is your choice and you may use the same example or different examples for each of the four calculations. For each of the four calculations, you will need to determine the timeline (how many years) and the interest rate.  

Answer 1

We can calculate Present Value, Future value, Present value of Annuity & Future value of Annuity with below Formula..

Present Value=FV/(1+r)n

Future Value = PV* (1+r)n

​where:FV=Future Value

PV = Present Value

r=Rate of return

n=Number of periods​

Example	Value
C -Cash Flow Per period or FV,PV	1000000
I / r - Intrest Rate	5%
n- Number of Payment/ Years	5

	FV/C/PV	r/i	N	Calculated Value
Present Value	1000000	0.05	5	783526.1665
Future Value	1000000	0.05	5	1276281.563
Present value of Annuity	1000000	0.05	5	4329476.671
Future Avalue of Annuity	1000000	0.05	5	5525631.25