Question
Determine the present value if $5,000 is received in the future(ie. at the end of each indicated time period) in each of the following situations. 5% for 10 years, 7% for 7 years and 9 % for 4 years
Answers
Reiny
I will do the first, you do the others in the same way
Let me know what you get.
PV = ?
Amount = 5000
i = .05
n = 10
PV(1 + i)^n = Amount
PV(1.05)^10 = 5000
PV = 5000/1.05^10
= 5000/1.628894627
= $3069.57
Let me know what you get.
PV = ?
Amount = 5000
i = .05
n = 10
PV(1 + i)^n = Amount
PV(1.05)^10 = 5000
PV = 5000/1.05^10
= 5000/1.628894627
= $3069.57
Anonymous
How do you get the rest ?