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Connect × \\ M MLK Holiday-jwilson14 × \\ L Recent-Google Drive x \\ Untitled document-Go , C0 https://newconnect.mheducation.com/flow/connect.html Apps D PowerTeacherMisc D AP GovernmentSt co D Work l Schedule Access Gmail % Mustang Public Schc D MACU Music e Final Cut Pro X102E D ASOIAF Human Geo #general 99 Talk Simple Team C D Library Chapter 4 Problems Help Save & Exit Submit Saved Check my work For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Future value $ 15,85:1 55,557 890,073 554,164 10 Years Interest Rate 8% 14 15 14 points 30 35 eBook Hint Print References Mc Graw Hill Prev 1 of 6 \" Next> Education

Solution

Answer a.

Future Value = $15,851
Annual Interest Rate, i = 8%
Time Period, n = 14

Present Value = Future Value / (1 + i)^n
Present Value = $15,851 / 1.08^14
Present Value = $5,396.65

Answer b.

Future Value = $55,557
Annual Interest Rate, i = 14%
Time Period, n = 5

Present Value = Future Value / (1 + i)^n
Present Value = $55,557 / 1.14^5
Present Value = $28,854.56

Answer c.

Future Value = $890,073
Annual Interest Rate, i = 15%
Time Period, n = 30

Present Value = Future Value / (1 + i)^n
Present Value = $890,073 / 1.15^30
Present Value = $13,442.82

Answer d.

Future Value = $554,164
Annual Interest Rate, i = 8%
Time Period, n = 35

Present Value = Future Value / (1 + i)^n
Present Value = $554,164 / 1.08^35
Present Value = $37,480.63