# Finding the missing values

A1. (PV and FV of single payments) Fill in the missing information:

PV FV r n

a. - 20 10% 10

b. 10 - 10% 10

c. 10 20 - 10

d. 10 20 10% -

A2. (PV and FV of single payments) Fill in the missing information:

PV FV r n

a. - 20 10% 15

b. 10 - 10% 15

c. 10 20 - 15

d. 15 20 10% -

A3. (PV and FV of single payments) Fill in the missing information:

PV FV r n

a. - 22,000 5.6% 3.0

b. 1,000 - 12.1% 5.5

c. 400 400 - 4.0

d. 25,000 50,000 7.75% -

A11. (Calculating the PV and FV of an annuity) Assume an ordinary annuity of $500 at the end

of each of the next three years.

a. What is the present value discounted at 10%?

b. What is the future value at the end of year 3 if cash flows can be invested at 10%?

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A1. (PV and FV of single payments) Fill in the missing information:

a.

PV=FV/(1+r)^n=20/(1+10%)^10=7.71

b.

FV=PV*(1+r)^n=10*(1+10%)^10=25.94

c.

r=(FV/PV)^(1/n)-1=(20/10)^(1/10)-1=7.18%

d.

FV=PV*(1+r)^n

20=10*(1+10%)^n

2=(1.1)^n

Taking Ln both sides

Ln2=nLn(1.1)

n=Ln(2)/Ln(1.1)=7.27

A2. (PV and ...

#### Solution Summary

Solution depicts the steps to find out the value of desired parameter in each case.