Find the equivalent amounts if the interest rate

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Reference no: EM13737150

Find the following equivalent amounts if the interest rate is 8% compounded annually.

a. The present value of a series of prospective payments, $1,200 a year for 100 years. Answer: $14,993

b. The accumulated value of series of prospective payments, $12 a year for 100 years.

c. The equal series of payments to be paid into a sinking fund to accumulate $1,200,000 in 100 years.

d. The equal series of payments to be made to repay a present amount of $120,000 in 100 years.

Reference no: EM13737150

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