Problem 4-4 (add the used formula) PRESENT VALUE CALCULATIONS What is the present value of the...
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Problem 4-4 (add the used formula) |
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PRESENT VALUE CALCULATIONS |
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What is the present value of the following future amounts? |
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Annual |
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Future Amount (SAR) |
Interest |
Years |
|
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900,000 |
5% |
5 |
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478,000 |
4% |
12 |
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279,000 |
12% |
4 |
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440,000 |
7% |
15 |
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Homework Answers
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Formula used: PV = FV/(1 + r)^n |
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Future Amount (SAR) |
Annual Interest |
Years |
Present value |
|
900,000 |
5% |
5 |
PV = 900,000/(1 + 0.05)^5 PV = $705,173.549821613 |
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478,000 |
4% |
12 |
PV = 478,000/(1 + 0.04)^12 PV = $298,557.389699271 |
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279,000 |
12% |
4 |
PV = 279,000/(1 + 0.12)^4 PV = 298,557.389699271 |
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440,000 |
7% |
15 |
PV = 440,000/(1 + 0.07)^15 PV = $159,476.248642638 |
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