Computing Present Values of Single Amounts and Annuities

Refer to Tables 1 and 2 in Appendix A near the end of the book to compute the present value for each of the following amounts.

Round answers to the nearest dollar.

a. $170,000 received 10 years hence if the annual interest rate is:

1. 10% compounded annually.Answer

2. 10% compounded semiannually.Answer

b. $7,000 received at the end of each year for the nexteight years discounted at 8% compounded annually. $Answer

c. $1,300 received at the end of each six months for the next 15 years if the interest rate is 10% per year compounded semiannually. $Answer

d. $300,000 received 10 years hence discounted at 10% per year compounded annually.