How much would you have to invest today to receive $12,000 in 6 years at 12 percent?
How much would you have to invest today to receive:
a. $12,000 in 6 years at 12 percent?
b. $15,000 in 15 years at 8 percent?
c. $5,000 each year for 10 years at 8 percent?
d. $40,000 each year for 40 years at 5 percent?
https://brainmass.com/business/finance/how-much-would-you-have-to-invest-today-to-receive-12-000-in-6-years-at-12-percent-23957
Solution Preview
PVIF= Present Value Interest Factor
PVIFA= Present Value Interest Factor for an Annuity
PVIFA( n, r%)= =[1-1/(1+r%)^n]/r%
PVIF( n, r%)= =1/(1+r%)^n
a. $12,000 in 6 years at 12 percent?
We will have to invest the PV of this amount
Rate=r= 12%
No of years=n= 6
Amount= $12,000.00
PVIF= (6 ...
Solution Summary
This solution provides step by step calculations for the present values of single cash flow and annuities.
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