Present Value Computations

Assuming that money is worth 10%, compute the present value of

Round answers to the nearest whole number.

1. $8,000 received 15 years from today.

Answer:

2. The right to inherit $1,250,000 14 years from now.

Answer:

3. The right to receive $2,000 at the end of each of the next six years.

Answer:

4. The obligation to pay $4,000 at the end of each of the next 10 years.

Answer:

5. The right to receive $6,000 at the end of the 7th, 8th, 9th, and 10th years from today.

Answer: