Answer these problems and show your work:
1. Calculate the present value of the following lump sums:
a. $100,000 to be received five years from now with a 5% annual interest rate
b. $200,000 to be received 10 years from now with a 10% annual interest rate

2. Calculate the future value of the following lump sums:
a. $100,000 if invested for five years at a 5% annual interest rate
b. $200,000 if invested for 10 years at a 10% annual interest rate

3. Calculate the present value of these ordinary annuities:
a. $100,000 to be received each year for five years with a 5% annual interest rate
b. $200,000 to be received each year for 10 years with a 10% annual interest rate

4. Calculate the future value of these ordinary annuities:
a. $100,000 if invested each year for five years at a 5% annual interest rate
b. $200,000 if invested each year for 10 years at a 10% annual interest rate

5. Calculate the present value of these perpetuities:
a. $100,000 to be received each year forever with a 5% annual interest rate
b. $200,000 to be received each year forever with a 10% annual interest rate

Submit your assignment by creating a table in Word. Interpret the results in Word.

... Notes: ( 1) See the hin problem 2- 9. ( 2) This problem can-not be solved exactly with some financial calculators. ... 2-9. Present and Future Values of Single ...

... Solution: The formula for present value (PV) is: n PV = Future Value (FV) / (1 + i). W here i = annual rate of return. And n = number of years. ...

... 9 Instructions Refer to data presented in text ... Solution Problem 6-38 Instructions Enter formulas to ...Present value of cash flows FORMULA Less: Investment (80,000 ...

... balance sheet for June 30, 2004 is presented below: ... The solution provides a solution for various problems including net present value computation, cash ...

... The solution explains two questions relating to accounts receivable and ... You must keep either the Present Value number or Future Value number negative ...

... 6. Present Value Years Future Value Interest Rate* a ... rate, we rearrange the basic future value equation as ... In these problems, you can either solve the equation ...

... We are willing repackage their value propositions in ... view, but not visible, present, or involving ... uncon- Interestingly, some problem-solving organizations have ...

... This solution is comprised of a detailed explanation to calculate ... 1 + R)N - 1 where FVA is the future value RW is ... x 1 - 1 where PVA is the present value (1 + R ...

... This solution is comprised of a detailed explanation to calculate the present values... FV = PV (1+i)n where PV is the present value FV is the future value i is ...