Work all the problems with a calculator (or spreadsheet) using the algebra equations and confirm your answer using the finance function available in your spreadsheet. The answers from both methods should be equal (within a small rounding error). Show what Algebraic Formula you use.

1. Find the present value of $125,000 you expect to receive 15 years from now using a discount rate of 7%. Write out the formula and use the power key, check with the Excel finance functions.

Show Work Formula Answer Spreadsheet fn

A. Discounted yearly: _______ _______

B. Discounted quarterly: _______ _______

C. Discounted monthly: _______ _______