Question
The present value of $130,000 to be received in five years at an interest rate of 16%, compounded annually, is $61,893. Using a present value
The present value of $130,000 to be received in five years at an interest rate of 16%, compounded annually, is $61,893.
Using a present value table , calculate the present value of $130,000 for each of the following items (parts a-f) using these facts:
(Note: use the appropriate values[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.
B. Interest is compounded quarterly.
C. A discount rate of 12% is used.
D. A discount rate of 20% is used.
E. The cash will be received in three years.
F. The cash will be received in seven years.
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