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