Explore BrainMass

Explore BrainMass

    Computation of Future Values, Present Values, and Bond Prices

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    E6-4 (Computation of Future Values and Present Values)
    Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.)

    [a] What is the future value of 20 periodic payments of $4,000 each made at the beginning of each period and compounded at 8%?

    [b] What is the present value of $2,500 to be received at the beginning of each of 30 periods, discounted at 10% compound interest?

    [c] What is the future value of 15 deposits of $2,000 each made at the beginning of each period and compounded at 10%? (Future value as of the end of the fifteenth period.)

    [d] What is the present value of six receipts of $1,000 each received at the beginning of each period, discounted at 9% compounded interest?

    © BrainMass Inc. brainmass.com March 4, 2021, 9:51 pm ad1c9bdddf
    https://brainmass.com/business/the-time-value-of-money/computation-future-values-present-values-bond-prices-276586

    Attachments

    Solution Summary

    The computation of future values, present values and bond prices are determined.

    $2.49

    ADVERTISEMENT