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    How much would you have to invest today to receive $12,000 in 6 years at 12 percent?

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    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?

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    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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