Read, Study & Practice Gradebook ORION Downloadable eTextbook me ignment> Open A
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Question
Read, Study & Practice Gradebook ORION Downloadable eTextbook me ignment> Open Assignment SIGNMENT RESOURCES Brief Exercise G-9 Click here to view the factor table (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What is the present value of $30,700 due 12 periods from now, discounted at 12%? (Round answer to 2 deemal places, e,g, 2525) Present value Brief Exercise G-10 eview Score eview Results by Study bjective (b) what is the present value of $30,700 to be received at the end of each of 5 periods, discounted at 10%? (Round answer to 2 decimal places, e.g. 2525 Present value LINK TO TEXT SAVE FOR LATER Question Attempts: 0 of 5 used All Rights Reserved, A Division of 2ohn Wiley 8 Sens Ioc.Explanation / Answer
(a) present value of $30700 due 12 period from now, discounted at 12%.
P. V of annuity factor of 12 period @ 12% discount is 6.194
Present Value = $30700 * 6.194 = $190156
(b) present value of $30700 to be received at the end of the each 5 periods, discounted at 10%
Present Value = $116353
Period Amount P.V factor Present value 1 $30700 0.909 $27906.3 2 $30700 0.826 $25358.2 3 $30700 0.751 $23055.7 4 $30700 0.683 $20968.1 5 $30700 0.621 $19064.7Related Questions
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