Question: Present Value and Future Value of a Lump Sum Amount desired at end of period Time (years) Interst Rate Compounded # of Periods Interest Rate/Period
Present Value and Future Value of a Lump Sum
| Amount desired at end of period | Time (years) | Interst Rate | Compounded | # of Periods
| Interest Rate/Period | PVIF | PV |
| $6,000 | 8 years | 3% | Semi-annual |
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| $8,900 | 4 years | 6% | Monthly |
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| $17,600 | 7 months | 12% | Quarterly |
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| $20,000 | 20 years | 8% | Annually |
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Greg Lawrence anticipates he will need approximately $218,000 in 15 years to cover his 3 year old daughters college bills. How much would he have to invest today at an interest rate of 8% compounded semi-annually?
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