Complete the following using present value Please use the fo

Complete the following using present value. (Please use the following provided Table.) (Do not round intermediate calculations. Round the \"Rate used\" to the nearest tenth percent. Round the \"PV factor\" to 4 decimal places and final answer to the nearest cent.)

On PV Table

Solution

HI,

Please find the detailed answer as follows:

Period Used = 10

Rate Used = 6%/2 = 3%

PV Factor Used = 8.5302

PV of amount desired at end of period = 8500/(1+0.03)^10 = $6324.80

Thanks