Homework SourseFor each of the following compute the present value 11 Years
For each of the following, compute the present value
11 Years at 5% Interest Rate with a Future Value of $18,628
Present Value:
3 Years at 10% Interest Rate with a Future Value of $42,817
Present Value:
15 Years at 13% Interest Rate with a Future Value of $803,382
Present Value:
20 Yers at 12% Interest Rate with a Future Value of $660,816
Present Value:
Solution
PV = FV/(1+r)n
where r = rate of interest
n = no of year
F = future value
PV = present value
| Present Value | Years | Interest Rate | Future Value | |||||||||||
| $ | 10891.41 | 11 | 5 | % | $ | 18,628 | ||||||||
| $ | 32169.05 | 3 | 10 | 42,817 | ||||||||||
| $ | 128453.35 | 15 | 13 | 803,382 | ||||||||||
| $ | 68504.66 | 20 | 12 | 660,816 |
