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Computation of Future Values, Present Values, and Bond Prices

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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?

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Solution Summary

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

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