Question
. Calculate the present value of each of the following items. Round all answers to the nearest whole number. a. $90,000 ten years hence if
. Calculate the present value of each of the following items. Round all answers to the nearest whole number.
a. $90,000 ten years hence if the annual interest rate is
1. Eight percent compounded annually. $Answer
2. Eight percent compounded semiannually. $Answer
3. Eight percent compounded quarterly. $Answer
b. $1,000 received at the end of each year for the next eight years if money is worth ten percent per year compounded annually. $Answer
c. $600 received at the end of each six months for the next fifteen years if the interest rate is eight percent per year compounded semiannually. $Answer
d. $500,000 inheritance ten years hence if money is worth ten percent per year compounded annually. $Answer
e. $2,500 received each half year for the next ten years plus a single sum of $85,000 at the end of ten years if the interest rate is twelve percent per year compounded semiannually. $Answer
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