Question: Use the table shown in Exercise 10 to calculate the present value of $22,000 received 10 years from now, assuming an interest rate of 15%.

Use the table shown in Exercise 10 to calculate the present value of $22,000 received 10 years from now, assuming an interest rate of 15%.

Present Value of $1 at Compound Interest

Year 10% 12% 15% 1 0.909 0.893 0.870 2 0.826 0.797 0.756 3 0.751 0.721 0.658 4 0.683 0.636 0.572 5 0.621 0.567 0.497 6 0.564 0.507 0.432 7 0.513 0.452 0.376 8 0.467 0.404 0.327 9 0.424 0.361 0.284 10 0.386 0.322 0.247

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

An ideal vapor-compression refrigeration cycle that uses refrigerant-134a as its working fluid maintains a condenser at 800 kPa and the evaporator at 20C. Determine this systems COP and the amount of...

HI, I need help with my Finance Course. Will you be able to assist? I have attached the instructions. Please let me know if you can help and let me know if you need any more information. As per...

Assuming the lending institution is owed a duty of care perform an accounting analysis: Recreate the journal entry that CBF made when it sold the stock to Easy Exchange. How much gain was recognized...

Can anyone please help, Is this correct? 2. Assuming Dash Spencer LLP owed a duty of care to the Booster Bank, did Dash Spencer, LLP breach that duty of care? In determining whether breach occurred,...

Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 1. $7,750 a year at the end of each of the...

Using the Final Project Excel Workbook, compute the following time value of money figures: 1. Calculate the present value of the company based on the given interest rate and provided Free Cash Flows...

I uploaded two file I need tutor to help me how can I start pls give me advice. I uploaded my question ( I never use the tutor word only I need how to solve this problem because it is my first time I...

An investment will pay $21,500 at the end of the first year, $31,500 at the end of the second year, and $51,500 at the end of the third year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the...

this is 14.1 Ch 14: End-of-Chapter Problems - Planning for Retirement Back to A mer Attempts: Average 12 2. Ch14 Financial Planning Exercise 3 elook Chapter 14 Financial Planning Exercise 3...

ABC, Inc. purchased a small building by making payments of $5,000 at the beginning of each year for ten years. However, nine years passed before ABC made any payments. Use an interest rate of 8%...

A company issued $1,090,000 worth of 10-year bonds with a 3% interest rate. Interest is to be paid annually. The bond issue date is January 1, 2018 and the company has a year-end of December 31....

Sparta and Associates produces trophies and has two divisions: the Green Division and the White Division. The Green Division produces the trophy base, which it can sell to outside markets for $150. A...

How does a researcher communicate to the reader the rationale for choices and literature throughout a research report?

P-1) (100 Pts.) A chemical manufacturing company (CMC) has a contract for the procurement of the neccssaly chemicals from four suppliers. The chemicals purchased from Supplier A are priced at $20...

Explain the importance of competitive labor market and product market forces in compensation decisions. page 470

Describe the fundamental pay programs for recognizing employees contributions to the organizations success. page 503

Specify the relationship between job satisfaction and various forms of job withdrawal, and identify the major sources of job satisfaction in work contexts. page 437