Purchase Solution

Present Values

Not what you're looking for?

Ask Custom Question

How much would you have to invest today to receive:

a. $15,000 in 8 years at 10 percent?

b. $20,000 in 12 years at 13 percent?

c. $6,000 each year for 10 years at 9 percent?

d. $50,000 each year for 50 years at 7 percent?

Purchase this Solution
Solution Summary

The solution calculates Present value, given Future value, Interest rate and number of years

Solution Preview

Note: The abbreviations have the following meanings

PVIFA= Present Value Interest Factor for an Annuity
FVIF= Future Value Interest Factor

They can be read from tables or calculated using the following equations
PVIFA( n, r%)= =[1-1/(1+r%)^n]/r%
FVIF( n, r%)= =(1+r%)^n

a. $15,000 in 8 years at 10 percent?

No of Periods= 8
interest rate per period= 10.00%
n= 8 ...

Purchase this Solution
Free BrainMass Quizzes
Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

View More Free Quizzes
Related BrainMass Solutions

  • Present/Future value

    The solution finds the present and future values of an income stream of $12,000 a year for 20 years.

  • Computation of Future Values, Present Values, and Bond Prices

    276586 Computation of Future Values, Present Values, and Bond Prices 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.)

  • lottery winner

    Using a discount rate of 5%, based on present values, which option do you choose? Using the same discount rate of 5%, based on future values, which do you choose?

  • Present Value / Future Values

    124055 Present Value / Future Values 1. Present Values. Compute the present value of a $100 cash flow for the following combinations of discount rates and times: a. r = 8 percent. t = 10 years. b. r = 8 percent. t = 20 years.

  • The future and present values for different periods.

    95189 Determining the future and present values for different periods Present and future values for different periods. Find the following values, using the equations and then a financial calculator compounding/discounting occurs annually. a.

  • Calculating present values

    198858 Calculating Present Values For each of the following, compute the present value: Present Value Years Interest Rates Future Value 6 5% $15,451 9

  • Time Value of Money - Future and Present Values

    58062 Time Value of Money - Future and Present Values 5. (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.

  • Present Value

    0.037561 $20,665 =550164*0.037561 The solution calculates Present values for a set of future values, given interest rates and number of years.

  • Time Value of the money (2)

    Note: Students using the tables or other sources of present and future values may have values slightly different due to rounding.

  • Valuation - Present and Future Value

    573067 Valuation - Present and Future Value We examined two important topics in finance this week: (a) present and future values and (b) security valuation. What is the importance of present and future values.

View More Related Solutions