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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.

\$2.49

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