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Phantasy [73]
3 years ago
10

Calculate the presentvalue of $5,000 received five years from today if your investments pay a. 6 percent compounded annually b.

8 percent compounded annually c. 10 percent compounded annually d. 10 percent compounded semiannually e. 10 percent compounded quarterly
Business
1 answer:
Goryan [66]3 years ago
7 0

Answer: 3736.30 ,  3402.90 ,  3104.60 , 3069.56 , 3051.35

Explanation: We can compute present values by using the following formula :-

=\:present\:value\:=\frac{future value}{\left ( 1+interest\:rate\right )^{no. of periods}}

=\:present\:value\:=\frac{5000}{\left ( 1+o.o6\right )^{1}} = 3736.30

=\:present\:value\:=\frac{5000}{\left ( 1+o.08\right )^{1}} = 3402.90

=\:present\:value\:=\frac{5000}{\left ( 1+o.1\right )^{1}} = 3104.60

=\:present\:value\:=\frac{5000}{\left ( 1+o.1\right )^{2}} = 3069.56

=\:present\:value\:=\frac{5000}{\left ( 1+o.1\right )^{4}} = 3051.35

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