QUESION Not completePoints out of 2.00F Flag question Present Value Computations

Question

QUESION Not completePoints out of 2.00F Flag question Present Value Computations Assuming that money is worth 10%, compute the present value of Round answers to the nearest whole number. 1. $9,000 received 15 years from today. 2. The right to inherit $1,500,000 14 years from now 3. The right to receive $3,000 at the end of each of the next six years. 4. The obligation to pay $5,000 at the end of each of the next 10 years 5. The right to receive $7,000 at the end of the 7ch, 8th, 9th, and 10th years from today Check Previous page

Explanation / Answer

PV = FC1/(1+rate)time +------+ FCn?/(1+rate)timen

1. PV =9000/(1.1)^15 = 2154.528

2. PV = 1500000/1.1014

3. PV = 3000/1.10 + ----- + 3000/1.106

= 13065.78

4. PV = 5000/1.10 + ----- + 5000/1.1010

=30722.84

5. PV = 12525.14

2. PV = 1500000/1.1014

3. PV = 3000/1.10 + ----- + 3000/1.106

= 13065.78

4. PV = 5000/1.10 + ----- + 5000/1.1010

=30722.84

5. PV = 12525.14

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