Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The present value of $100.000 to be received in five years at an interest rate of 16%, compounded annually, is $47.610. Required: Using a present

image text in transcribed
image text in transcribed
image text in transcribed
The present value of $100.000 to be received in five years at an interest rate of 16%, compounded annually, is $47.610. Required: Using a present value table (Table 6-4 and Table 6-5), calculate the present value of $100,000 for each of the following items (parts - f) using these facts: (Use the appropriate value(s) from the tables provided. Round your PV factors to 4 decimal places and final answers to the nearest whole dollar.) a. Interest is compounded semiannually. Present value b. Interest is compounded quarterly. Present value c. A discount rate of 12% is used. Present value d. A discount rate of 20% is used. Present value e. The cash will be received in three years. Present value f. The cash will be received in seven years. Present value

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook On Energy Audit And Environment Management

Authors: Y.P. Abbi, Shashank Jain

1st Edition

8179930920, 978-8179930922

More Books

Students also viewed these Accounting questions