EA$12.$ LO $11\mathrm{.}3$ Your friend has a trust fund that will pay her the following amounts at the given interest rate for the given number of years. Calculate the current $($present$)$ value of your friend's trust fund payments. For further instructions on future value in Excel, see Appendix C $($

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Solution

Using the PV formula in Excel:

$\backslash$table$[[$Amount of$,$Rate,Time,Current Value$],[$Yearly Receipt,,,$],[$$$6,200,10\%,5$ years,$],[$$$12,200,12\%,10$ years,$],[$$$18,000,15\%,15$ years,$],[$$$$22,500,20\%,20$ years,$]]$