Problem 4-3 Calculating Present Values

For each of the following, compute the present value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Present Value		Years		Interest Rate				Future value
$		13		7	%			$	15,751
		4		13					54,557
		29		14					889,073
		40		9					553,164

Problem 4-4 Calculating Interest Rates

Solve for the unknown interest rate in each of the following: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Present Value

Years

Interest Rate

Future Value

$

340

5

%

$

465

460

19

1,752

49,000

20

303,726

48,261

30

1,485,098

Problem 4-5 Calculating the Number of Periods

Solve for the unknown number of years in each of the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Present Value					Years		Interest Rate				Future Value
	$	570					8	%			$	1,293
		820					12					2,173
		18,500					18					343,880
		21,600					14					363,176

Problem 4-8 Calculating Rates of Return

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. In 2010, an auction house sold a painting at auction for a price of $1,020,000. Unfortunately for the previous owner, he had purchased it three years earlier at a price of $1,600,000. What was his annual rate of return on this painting? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. A negative answer should be indicated by a minus sign.) Annual rate of return %