In this part, calculate the present values. Use the Excel PV function to compute the present values.

You are committed to owning a $200,000 home. If you believe your mutual fund can achieve an annual return of 10 percent, and you want to buy the home in 15 years, how much must you invest today?

Calculate the present values in the table below using the PV Excel function. Future value Years Interest rate Present value $19,500 16 6% ? $47,390 9 12% ? $312,200 13 11% ? $629,380 25 13% ?