Find the present value of $5,300 under each of the following rates and periods.

Question

Find the present value of $5,300  under each of the following rates and periods.

(If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

a. 8.9 percent compounded monthly for five years.

Present value $ Find the present value of $5,300 under each of the following rates and periods. 8.9 percent compounded monthly for five years. 6.6 percent compounded quarterly for eight years. 4.3 percent compounded daily for four years. 5.7 percent compounded continuously for three years.

Explanation / Answer

Hi,

Please find the answers as follows:

1) PV = 5300/(1+ 0.089/12)^60 = 3401.95 or 3402

2) PV = 5300/(1+0.066/4)^32 = 3139.35 or 3139

3) PV = 5300/(1+0.043/365)^(4*365) = 4462.54or 4463

d) PV = 5300/e^(0.057*3) = 4466.95 or 4467

Thanks.

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