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# Time Value of the money (2)

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E6-3 (Computation of Future Values and Present Values) Using the appropriate interest table or Excel formula, answer each of the following questions: (Each case is independent of the others.)

(1) What is the future value of \$7,000 at the end of 5 periods at 8% compounded interest?

(2) What is the present value of \$7,000 due 8 periods hence, discounted at 11%

(3) What is the future value of 15 periodic payments of \$7,000 each made at the end of each period and compounded at 10%?

(4) What is the present value of \$7,000 to be received at the end of each of 20 periods, discounted at 5% compound interest?

Note: Students using the tables or other sources of present and future values may have values slightly
different due to rounding.

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#### Solution Summary

This suggested solution uses a dynamic Excel file showing various Time Value Situations. Computation is done using an Excel formula.

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