search

# Calculate the present value of \$7,000 received four years from today

Content type
User Generated
Rating
Showing Page:
1/2
Calculate the present value of \$7,000 received four years
from today if your investments pay (Do not round
intermediate calculations. Round your answers to 2
decimal places. (e.g., 32.16))
Present Value
a. 5 percent compounded annually \$
b. 7 percent compounded annually
c. 9 percent compounded annually
d. 9 percent compounded semiannually
e. 9 percent compounded quarterly
Solution
Answer (a)
Given
Future value (FV) = \$7000
Period ( t ) = 4
Periodic Interest rate = 5% per annum
Present value = Future value * PVIF ( 5% , 4 )
=\$7000 * 0.82270247
=\$5758.92
Answer no (b)
Periodic interest rate = 7%
Present value = Future value * PVIF ( 7% , 4 )

Sign up to view the full document!

Showing Page:
2/2

Sign up to view the full document!

Unformatted Attachment Preview
Calculate the present value of \$7,000 received four years from today if your investments pay (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Present Value a. 5 percent compounded annually \$ b. 7 percent compounded annually c. 9 percent compounded annually d. 9 percent compounded semiannually e. 9 percent compounded quarterly Solution Answer (a) Given Future value (FV) = \$7000 Period ( t ) = 4 Periodic Interest rate = 5% per annum Present value = Future value * PVIF ( 5% , 4 ) =\$7000 * 0.82270247 =\$5758.92 Answer no (b) Periodic interest rate = ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

### Review

Anonymous
Excellent resource! Really helped me get the gist of things.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4