What is the present value of Use Appendix B as an approximate answer, but calcul
ID: 2761307 • Letter: W
Question
What is the present value of Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator metheds $8,400 in 12 years at 11 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) $17,200 in 6 years at 9 percent'? (Do not round intermediate calculations. Round your final answer to ? decimal places.) $26,800 in 18 years at 10 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)Explanation / Answer
a. Calculation of Present value:
Formula :
Present value = Future value / (1+r)^n
Future value =$8400
r = interest rate = 11% = 0.11
n = number of years = 12
hence ,
Present value = 8400 / (1+0.11)^12
= 8400 / 3.498451
= $2401.06
b. Calculation of Present value:
Formula :
Present value = Future value / (1+r)^n
Future value =$17200
r = interest rate = 9% = 0.09
n = number of years = 6
hence ,
Present value = 17200 / (1+0.09)^6
= 17200 / 1.6771
= $10255.80
c. Calculation of Present value:
Formula :
Present value = Future value / (1+r)^n
Future value =$26800
r = interest rate = 10% = 0.10
n = number of years = 18
hence ,
Present value = 26800 / (1+0.10)^18
= 26800 / 5.559917
= $4820.22
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.