Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: M.Y. Khan, P.K. Jain

2nd Edition

9339203445, 9789339203443

More Books

Students also viewed these Accounting questions

Question

=+f. Does it promise a benefit or solve a problem?

Answered: 1 week ago

Question

=+ Why do some seem like a personalized, individual message?

Answered: 1 week ago