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Thank you Determine the present value of $350,000 to be received at the end of each of four years, using an interest rate of 7%,
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Determine the present value of $350,000 to be received at the end of each of four years, using an interest rate of 7%, compounded annually, as follows: a. By successive computations, using the present value of 51 table in Exhibit S. Round to the monarest whole dollar First year 327,102.80 x Second Year 305,703.55 X Third Year 285,704.26 x Fourth Year 267,013.32 X Total present value 1,185,523.94 b. By using the present value of an annuity of $1 table in Exhibit 7. Round to the nearest whole dollar. 1,185,520.00 c. Why is the present value of the four $350,000 cash receipts less than the $1,400,000 to be received in the future? The present value is less due to the compounding of interest over the 4 years Periods 1 2 3 4 5 6 7 8 9 10 49 0.96154 0.92456 0.88900 0.85480 0.82193 0.79031 0.75992 0.73059 0.70259 0.67556 449 0.956940 0.915730 0.76300 0.836560 0.802450 0.767900 0.734830 0.703190 0.672900 0.643930 5% 0.95238 0.90703 0.56384 0.82270 0.78353 0.74622 0.71060 0.67684 0.64461 0.61391 SN 0.94787 0.89845 0.85161 0.80722 0.76513 0.72525 0.58744 0.65160 061763 058543 6% 0.94340 0.89000 0:32 0.79200 0.74725 0.70496 0.66506 0.62741 059180 0.55839 0.93897 0.88166 0.82785 0.77732 0.72980 0.68533 0.64351 0.60423 0.56735 0.53273 7% 0.93458 0.87344 0.81630 076290 0.71299 0.66634 0,62275 050201 054393 050635 10% 0.90909 0.82645 0.75131 0.68301 062092 0.56447 0.51316 0.46651 0.42410 0.38554 11% 0.000 0.81162 0.73119 0.65873 0.59345 0.53464 048166 043393 0.39092 0.35218 125 0.89206 0.79719 0.71178 063552 056743 050563 045235 0.40988 0.36061 0.32197 13% 0.86196 0.78315 0.69305 0.61332 054276 0.41032 0.42500 0.37616 03328 0.29459 Step by Step Solution
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