Question: Using a present value table your calculator or a computer program

Using a present value table, your calculator, or a computer program present value function, verify that the present value of $100,000 to be received in five years at an interest rate of 16%, compounded annually, is $47,610. Calculate the present value of $100,000 for each of the following items (parts a–f ) using these facts, except
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.

  • CreatedMarch 13, 2012
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