Please help me with these trial balance questions.
(Please see the attached file for the complete problem outline).
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.
(Please see the attached file for the complete solution)
This suggested solution uses a dynamic Excel file showing various Time Value Situations. Computation is done using an Excel formula.