Posted: February 16th, 2017

Using a present value table, your calculator, or a computer program present value function, answer the following questions. Assistance is needed with the formula to calculate the problems:

Required:

a. What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%?

b. What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%?

c. How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of 12 years, assuming that the account will earn 10% interest and the interest is reinvested?

d. How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of seven years, assuming that the account will earn 12% interest and the interest is reinvested”

Place an order in 3 easy steps. Takes less than 5 mins.