Explore BrainMass

Explore BrainMass

    Step-wise answer to Present Value

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1. Present value calculations. Using a present value table, your calculator, or a computer program present value function, answer the following questions:
    a. What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%?
    b. What is the present value of $15,000 to be paid at the end of 20 years, using an interest rate of 18%?
    c. How much cash must be deposited in a savings account as a single amount in order to accumulate $300,000 at the end of 12 years, assuming that the account will earn 10% interest?
    d. How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of seven years, assuming that the account will earn 12% interest?

    © BrainMass Inc. brainmass.com June 3, 2020, 10:08 pm ad1c9bdddf
    https://brainmass.com/business/annuity/step-wise-answer-to-present-value-216654

    Attachments

    Solution Preview

    1 Present value calculations. Using a present value table, your calculator, or a computer program present value function, answer the following questions:
    a. What is the present value of nine annual cash payments of $4,000, to be paid at the end of each year using an interest rate of 6%?

    By excel function
    Here we have to find ...

    Solution Summary

    This provides the steps to calculate the Present value

    $2.19

    ADVERTISEMENT