Question

(For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What...


(For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

(a) What is the present value of $27,500 due 13 periods from now, discounted at 6%? (Round answer to 2 decimal places, e.g. 25.25.)

Present value

$enter the present value of the investment discounted at 6% rounded to 2 decimal places



(b) What is the present value of $27,500 to be received at the end of each of 5 periods, discounted at 9%? (Round answer to 2 decimal places, e.g. 25.25.)

Present value

$enter the present value of the investment discounted at 9% rounded to 2 decimal places

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Answer #1
a
Amount due 27500
X PV factor of $1 0.46884 =1/1.06^13
Present value 12893.10
b
Annuity Amount 27500
X PV factor of $1 annuity 3.88965 =(1-(1.09)^-5)/0.09
Present value 106965.38
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