Question

Present value formula:

PV = FV / (1+r)n

Where FV = Future value, r = rate of interest, n = number of years.

Answer(a): PV = 8400 / (1+.07)12

PV = \$3729.700457 or \$3729.70 is the answer.

Answer(b): PV = 18700 / (1+.08)6

PV = \$11784.172022 or \$11784.17 is the answer.

Answer(c): PV = 28200 / (1+.10)18

PV = \$5072.017875 or \$5072.02 is the answer.

(Figures in image are little blurred, I might get some numbers wrong and please rate.)

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