Present VALUE

Finding the Present Value(Principal) and the Compound Interest Using the Formula.

Using the present value formula, solve the following:

a.)

Compound Amount = 20,000

Nominal Rate = 6%

Term of Loan = 10 years

Interest Compounded = Annually

What is the present Value?

b.)

Compound Amount = 9,000

Nominal Rate = 9%

Term of Loan = 4 years

Interest Compounded = Semi-Annually

What is the present Value?

c.)

Compound Amount = 3,500

Nominal Rate = 8%

Term of Loan = 4 years

Interest Compounded = Quarterly

What is the present Value?

d.)

Compound Amount = 100,000

Nominal Rate = 12%

Term of Loan = 2 years

Interest Compounded = Bi-Monthly

What is the present Value?

e.)

Compound Amount = 7,000

Nominal Rate = 10%

Term of Loan = 30 years

Interest Compounded = Annually

What is the present Value?

f.)

Compound Amount = 50,000

Nominal Rate = 12%

Term of Loan = 7 years

Interest Compounded = Quarterly

What is the present Value?

Please explain thoroughly or my understanding.