Question

Determine the present values if $5,000 is received in the future (at the end of each indicated time period) in each of the following situations:
a. 5% for 10yrs

b. 7% for 7yrs

c. 9% for 4yrs

Answer 1

I will do the last one, you do the other two in the same way

c)
PV = 5000(1.09)^-4
= $3542.13