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Determine the present value of the following single amounts (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.):

Sagot :

abiolataiwo2015

Answer:

1. $15,406

2. $6,461

3. $2,118

4. $15,262

Explanation:

Calculation to Determine the present value

1. Calculation for the Present Value of $31,000, n= 12, i =6%

First step is to find the Present value of $1:

n= 12, i =6% (from PV of $1)

Where,

n represent the period for investment

i represent the interest rate

The Present value of $1:n= 12, i =6% (from PV of $1) is 0.49697

Now let Calculate the Present Value of $31,000,n= 12, i =6%

Present value=$31,000 *0.49697

Present value= $15,406

2. Calculation for the Present Value of $25,000, n= 20, i =7%

First step is to find the Present value of $1:

n= 20, i =7% (from PV of $1)

Where,

n represent the period for investment

i represent the interest rate

The Present value of $1:n= 20, i =7% (from PV of $1) is 0.25842

Now let Calculate the Present Value of $25,000, n= 20, i =7%

Present value=$25,000 *0.25842

Present value= $6,461

3. Calculation for the Present Value of $36,000, n= 25, i =12%

First step is to find the Present value of $1:

n= 25, i =12% (from PV of $1)

Where,

n represent the period for investment

i represent the interest rate

The Present value of $1:n= 25, i =12% (from PV of $1) is 0.05882

Now let Calculate the Present Value of $36,000, n= 25, i =12%

Present value=$36,000 *0.05882

Present value= $2,118

4.Calculation for the Present Value of $51,000, n= 14, i =9%

First step is to find the Present value of $1:

n= 14, i =9% (from PV of $1)

Where,

n represent the period for investment

i represent the interest rate

The Present value of $1:n= 14, i =9% (from PV of $1) is 0.29925

Now let Calculate the Present Value of $51,000, n= 14, i =9%

Present value=$51,000 *0.29925

Present value= $15,262

Therefore the PRESENT VALUE will be:

Future Amount i = n = Present Value

1 $31,000 6% 12 =$15,406

2 $25,000 7% 20 =$6,461

3 $36,000 12% 25 =$2,118

4 $51,000 9% 14 =$15,262

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