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Computing the Present Value: $50,000 receivable at the end

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Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods. (Round only the final answer for (c) to 2 decimal places, e.g. 10,250.25.)

(a)

(b) $50,000 payments to be made at the end of each period for 16 periods at 9%

(c) $50,000 payable at the end of the seventh, eighth, ninth, and tenth periods at 12%

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Solution Summary

Your tutorial is in Excel, attached. I used the tables in my book. You can verify that your tables use the same number of decimal places (some use four and some use five).

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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