# What is the present value of the following? Use Appendix B as an approximate answer, but...

What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. \$8,700 in 9 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value b. \$17,800 in 4 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value C. \$27,500 in 12 years at 11 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value

Ans:- we will use the Present Value of the annuity formula to find the answer.

PV of an annuity is given by P*[1-(1+r)^-n] / r, where P is the Periodic Payment, r is the rate of return and n is the number of periods.

(a) PV = \$8700*[1-(1+0.07)^-9] / 0.07 = \$56,682.52

(b) PV = \$17,800*[1-(1+0.08)^-4] / 0.08 = \$58,955.86

(c) PV = \$27,500*[1-(1+0.11)^-12] / 0.11 = \$178,539.79

#### Earn Coin

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
• ### What is the present value of the following? Use Appendix B as an approximate answer, but...

What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. \$8,300 in 13 years at 5 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value b. \$18,600 in 3 years at 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value c. \$28,100 in 9 years at 8...

• ### What is the present value of the following? Use Appendix B as an approximate answer, but...

What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. \$7,800 in 6 years at 10 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)    b. \$16,500 in 3 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)    c. \$25,700 in 9 years at 8 percent? (Do...

• ### What is the present value of the following? Use Appendix B as an approximate answer, but...

What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. \$8,600 in 5 years at 10 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)    b. \$17,600 in 3 years at 6 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) c. \$27,100 in 9 years at 7 percent? (Do not...

• ### How much would you have to invest today to receive the following? Use Appendix B or...

How much would you have to invest today to receive the following? Use Appendix B or Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.    a. \$15,250 in 11 years at 7 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)    b. \$19,600 in 18 years at 11 percent. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)    c....

• ### How much would you have to Invest today to receive the following? Use Appendix B and Appendix D for an approximate ans...

How much would you have to Invest today to receive the following? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. \$7,800 each year for 20 years at 6 percent. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) Present value 553,000 each year for 25 years at 12 percent. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.)...

• ### Your grandfather has offered you a choice of one of the three following alternatives: \$5,500 now; \$1,250 a year for five years; or \$17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer u

Your grandfather has offered you a choice of one of the three following alternatives: \$5,500 now; \$1,250 a year for five years; or \$17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.a-1. Assuming you could earn 6 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)1250 ->    Present value = _________  a-2. If you...

• ### a. What is the present value of \$240,000 to be received after 30 years with a...

a. What is the present value of \$240,000 to be received after 30 years with a 16 percent discount rate? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)    b. Would the present value of the funds in part a be enough to buy a \$2,800 concert ticket?    No Yes

• ### Your father offers you a choice of \$125,000 in 11 years or \$45,500 today. Use Appendix B as an ap...

Your father offers you a choice of \$125,000 in 11 years or \$45,500 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 8 percent, what is the present value of the \$125,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)    a-2. Which offer should you choose?    \$45,500 today \$125,000 in 11 years b-1. Now assume the offer is...

• ### Your uncle offers you a choice of \$112,000 in 10 years or \$51,000 today. Use Appendix...

Your uncle offers you a choice of \$112,000 in 10 years or \$51,000 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 8 percent, what is the present value of the \$112,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value

• ### Can someone please break this down so I know how to work this problem? What is...

Can someone please break this down so I know how to work this problem? What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. \$8,400 in 12 years at 11 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)    b. \$17,200 in 6 years at 9 percent? (Do not round intermediate calculations. Round your final answer...

Free Homework Help App