Question
Attached is Appendix 12A - my screen shows that the jpeg is attached to the bottom of this email. Is it showing up on your
Attached is Appendix 12A - my screen shows that the jpeg is attached to the bottom of this email. Is it showing up on your end?
Time Value of Money: Basics
Using the equations and tables in Appendix 12A of this chapter, determine the answers to each of the following independent situations:
Round all answers to the nearest whole number.
a. The future value in two years of $8,500 invested today in a certificate of deposit with interest compounded annually at 10 percent.
$
b. The present value of $10,000 to be received in five years, discounted at 8 percent.
$
c. The present value of an annuity of $23,500 per year for four years discounted at 12 percent.
$
d. An initial investment of $45,220 is to be returned in six equal annual payments. Determine the amount of each payment if the interest rate is 16 percent.
$
e. A proposed investment will provide cash flows of $10,000, $13,000 and $11,000 at the end of Years 1, 2, and 3, respectively. Using a discount rate of 16 percent, determine the present value of these cash flows.
Present Value
Year 1
Year 2
Year 3
Total
f. Find the present value of an investment that will pay $10,000 at the end of Years 8, 9, and 10. Use a discount rate of 12 percent.
$
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