What is the present value of the following Use Appendix B as

What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a. $7,800 in 6 years at 10 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
  

b. $16,500 in 3 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
  

c. $25,700 in 9 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Solution

a) Present value = 7800 X (PVF 6years 10%)

= 7800 X 0.564

= 4399.2

b) Present value = 16500 X (PVF 3Years 7%)

= 16500 X 0.816

= 13464

C) Present Value = 25700 X (PVF 9 Years 8%)

= 25700 X 0.500

= 12850