Problem 4-14 Present Value with Different Discount Rates

1. Calculate the present value in two years using discount rates.

Compute the present value of $4800.00 paid in two years using the following discount rates: 8 percent in the first year and 7 percent in the second year. (Do not round intermediate calculations and round your answer to 2 decimal places).

Future Value: $4800.00

Number Of Years: 2

Interest Rate First Year: 8.00%

Interest Rate Second Year: 7.00%

Complete the following analysis. Do not hardcore values in your calculations.

Value two years from today?

Value one year from today?

Present Value?

***All answers must be entered with a formula*** (Excel)