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

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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 )

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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 = ...
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