Computing present values of single amounts and annuities

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Computing Present Values of Single Amounts and Annuities

Refer to Tables 1 and 2 in Appendix A near the end of the book to compute the present value for each of the following amounts.

Round answers to the nearest dollar.

a. $150,000 received 10 years hence if the annual interest rate is:

1. 10% compounded annually. $

2. 10% compounded semiannually. $

b. $5,000 received at the end of each year for the next eight years discounted at 8% compounded annually. $

c. $1,100 received at the end of each six months for the next 15 years if the interest rate is 10% per year compounded semiannually. $

d. $280,000 received 10 years hence discounted at 10% per year compounded annually. $

Reference no: EM131878415

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