Your bank pays you 8% annually, compounded semiannually.
1.If you want to retrieve $100,000 five years down the road, how much do you need to deposit today?
2.If you want to retrieve $4,500 every half a year for five years, how much do you need to deposit today?
The time value tables are available as a PDF file
- Present value table.pdf
9% 12% Present Value of $1 (Present Value of a Single Sum) Periods 1% 2% 3% 4% 1 0.9901 0.9804 0.9709 0.9615 2 0.9803 0.9612 0.9426 0.9246 3 0.9706 0.9423 0.9151 0.8890 4 0.9610 0.9238 0.8885 0.8548 5 0.9515 0.9057 0.8626 0.8219 5% 0.9524 0.9070 0.8638 0.8227 0.7835 6% 0.9434 0.8900 0.8396 0.7921 0.7473 7% 0.9346 0.8734 0.8163 0.7629 0.7130 8% 0.9259 0.8573 0.7938 0.7350 0.6806 0.9174 0.8417 0.7722 0.7084 10% 0.9091 0.8264 0.7513 0.6830 0.8929 0.7972 0.7118 0.6355 0.5674 0.6499 0.6209 6 7 8 9 0.9420 0.9327 0.9235 0.9143 0.9053 0.8880 0.8706 0.8535 0.8368 0.8203 0.8375 0.8131 0.7894 0.7664 0.7441 0.7903 0.7599 0.7307 0.7026 0.6756 0.7462 0.7107 0.6768 0.6446 0.6139 0.7050 0.6651 0.6274 0.5919 0.5584 0.6663 0.6227 0.5820 0.5439 0.5083 0.6302 0.5835 0.5403 0.5002 0.4632 0.5963 0.5470 0.5019 0.4604 0.4224 0.5645 0.5132 0.4665 0.4241 0.3855 0.5066 0.4523 0.4039 0.3606 0.3220 10 11 12 13 14 15 0.8963 0.8874 0.8787 0.8700 0.8613 0.8043 0.7885 0.7730 0.7579 0.7430 0.7224 0.7014 0.6810 0.6611 0.6419 0.6496 0.6246 0.6006 0.5775 0.5553 0.5847 0.5568 0.5303 0.5051 0.4810 0.5268 0.4970 0.4688 0.4423 0.4173 0.4751 0.4440 0.4150 0.3878 0.3624 0.4289 0.3971 0.3677 0.3405 0.3152 0.3875 0.3555 0.3262 0.2992 0.2745 0.3505 0.3186 0.2897 0.2633 0.2394 0.2875 0.2567 0.2292 0.2046 0.1827 16 17 18 19 20 0.8528 0.8444 0.8360 0.8277 0.8195 0.7284 0.7142 0.7002 0.6864 0.6730 0.6232 0.6050 0.5874 0.5703 0.5537 0.5339 0.5134 0.4936 0.4746 0.4564 0.4581 0.4363 0.4155 0.3957 0.3769 0.3936 0.3714 0.3503 0.3305 0.3118 0.3387 0.3166 0.2959 0.2765 0.2584 0.2919 0.2703 0.2502 0.2317 0.2145 0.2519 0.2311 0.2120 0.1945 0.1784 0.2176 0.1978 0.1799 0.1635 0.1486 0.1631 0.1456 0.1300 0.1161 0.1037 Present Value of an Ordinary Annuity of $1 for n Periods Periods 1% 2% 3% 4% 5% 1 0.9901 0.9804 0.9709 0.9615 0.9524 2 1.9704 1.9416 1.9135 1.8861 1.8594 3 2.9410 2.8839 2.8286 2.7751 2.7232 4 3.9020 3.8077 3.7171 3.6299 3.5460 5 4.8534 4.7135 4.5797 4.4518 4.3295 6% 0.9434 1.8334 2.6730 3.4651 4.2124 7% 0.9346 1.8080 2.6243 3.3872 4.1002 8% 0.9259 1.7833 2.5771 3.3121 3.9927 9% 0.9174 1.7591 2.5313 3.2397 3.8897 10% 12% 0.9091 0.8929 1.7355 1.6901 2.4869 2.4018 3.1699 3.0373 3.7908 3.6048 6 4.9173 7 5.5824 5.7955 6.7282 7.6517 8.5660 9.4713 8 9 5.6014 6.4720 7.3255 8.1622 8.9826 5.4172 6.2303 7.0197 7.7861 8.5302 5.2421 6.0021 6.7327 7.4353 8.1109 5.0757 5.7864 6.4632 7.1078 7.7217 6.2098 4.7665 5.3893 5.9713 6.5152 7.0236 4.6229 5.2064 5.7466 6.2469 6.7101 4.4859 5.0330 5.5348 5.9952 6.4177 4.3553 4.1114 4.8684 4.5638 5.3349 4.9676 5.7590 5.3282 6.1446 5.6502 6.8017 7.3601 10 11 12 13 14 15 10.3676 11.2551 12.1337 13.0037 13.8651 9.7868 10.5753 11.3484 12.1062 12.8493 9.2526 9.9540 10.6350 11.2961 11.9379 8.7605 9.3851 9.9856 10.5631 11.1184 8.3064 8.8633 9.3936 9.8986 10.3797 7.8869 8.3838 8.8527 9.2950 9.7122 7.4987 7.9427 8.3577 8.7455 9.1079 7.1390 7.5361 7.9038 8.2442 8.5595 6.8052 7.1607 7.4869 7.7862 8.0607 6.4951 6.8137 7.1034 7.3667 7.6061 5.9377 6.1944 6.4235 6.6282 6.8109 16 8.8514 17 18 19 20 14.7179 15.5623 16.3983 17.2260 18.0456 13.5777 14.2919 14.9920 15.6785 16.3514 12.5611 13.1661 13.7535 14.3238 14.8775 11.6523 12.1657 12.6593 13.1339 13.5903 10.8378 11.2741 11.6896 12.0853 12.4622 10.1059 10.4773 10.8276 11.1581 11.4699 9.4466 9.7632 10.0591 10.3356 10.5940 9.1216 9.3719 9.6036 9.8181 8.3126 8.5436 8.7556 8.9501 9.1285 7.8237 6.9740 8.0216 7.1196 8.2014 7.2497 8.3649 7.3658 8.51367.4694
