Refer to the appropriate tables in the text.
Required:
Round answers to two decimal places. Determine:
a. The present value of a single $ 14,000 cash flow in seven years if the interest (discount) rate is 8 percent per year.
b. The number of periods for which $ 5,820 must be invested at an annual interest (discount) rate of 7 percent to produce an investment balance of $ 10,000.
c. The size of the annual cash flow for a 25-year annuity with a present value of $ 49,113 and an annual interest rate of 9 percent. One payment is made at the end of each year.
d. The annual interest rate at which an investment of $ 2,542 will provide for a single $ 4,000 cash flow in four years.
e. The annual interest rate earned by an annuity that costs $ 17,119 and provides 15 payments of $ 2,000 each, one at the end of each of the next 15 years.