32700 00 100 with muitiple cash tows SolutionPresent value o

32,700 00, 100 with muitiple cash tows

Solution

Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate

1.

32700=Annuity[1-(1.07)^-6]/0.07

32700=Annuity*4.76653966

Annuity=32700/4.76653966

=$6860.32(Approx).

2.

30100=Annuity[1-(1.05)^-8]/0.05

30100=Annuity*6.463212759

Annuity=30100/6.463212759

=$4657.13(Approx).

3.

164000=Annuity[1-(1.1)^-13]/0.1

164000=Annuity*7.103356203

Annuity=164000/7.103356203

=$23087.68(Approx).

4.

236100=Annuity[1-(1.09)^-17]/0.09

236100=Annuity*8.543631369

Annuity=236100/8.543631369

=$27634.62(Approx).