***Present Value of an Annuity

Samuel David wants to make 5 equal annual withdrawals of $8,000 from a fund that will earn interest at 10% compounded annually.

Required: How much would Samuel have to invest on:

Round your answers to two decimal places.

January 1, 2016, if the first withdrawal is made on January 1, 2017? $_________

January 1, 2016, if the first withdrawal is made on January 1, 2016? $_________

*****Present Value Computations

Using the present value tables, solve the following.

Round your answers to two decimal places.

Required:

What is the present value on January 1, 2016, of $30,000 due on January 1, 2020, and discounted at 10% compounded annually?$__________

What is the present value on January 1, 2016, of $40,000 due on January 1, 2020, and discounted at 11% compounded semiannually?$ _________

What is the present value on January 1, 2016, of $50,000 due on January 1, 2020, and discounted at 16% compounded quarterly? $ __________