Question text

Present Value Computations

Assuming that money is worth 12%, compute the present value of:

Note: Round answers to the nearest whole number, if applicable.

1. $6,000 received 15 years from today.

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

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

4. The obligation to pay $1,000 at the end of each of the next 10 years.

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