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Present Value Factor Calculation

Present value

P4-10 Present value calculation Without referring to the preprogrammed function on your financial calculator or tables, use the basic formula for present value, along with the given opportunity coast, I, and the number of periods, n, to calculate the present value interest factor in each of the cases shown in the following table. Compare the calculated value to the table value.

Opportunity Number of
Case cost, I periods, n
A 2% 4
B 10 2
C 5 3
D 13 2

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P4-10 Present value calculation Without referring to the preprogrammed function on your financial calculator or tables, use the basic formula for present value, along with the given opportunity cost, I, and the number of periods, n, to calculate the present ...

Solution Summary

This solution shows step-by-step to determine the present value of each case using the cost and period information.

$2.19