Answer:
1. Future Value = 30,000
Rate = 0.12
Annual period, NPER = 5
Present value, PV = PV(0.12, 5,0,-30,000 ,0)
Present value, PV = $17,022.81
2. Future value = 8,000
Quarterly rate = 16%/4 = 4%
Number of quarters, Nper = 4.5*4 = 18
Present value, PV = PV (4% , 18, 0, -8,000 , 0)
Present value, PV = $3,949.02
3. Future value = 8,000
Annual rate = 0.1
Annual period, Nper = 5
Present value, PV = PV(0.1, 5, 0, -8000, 0)
Present value, PV = $4,967.37
Present value Discount = 8,000 - 4,967.37
Present value Discount = $3,032.63
