Using the appropriate interest table or Excel
formula, answer each of the following questions: (Each case is independent of
the others.)
E6-3 (Computation of
Future Values and Present Values) Using the appropriate interest table or Excel
formula, answer each of the following questions: (Each case is independent of
the others.)
(a) What
is the future value of $7,000 at the end of5 periods at8% compounded interest?
(b) What
is the present value of 7,000 due 8 periods hence, discounted at11%
(c) What
is the future value of 15 periodic payments of $7,000 each made at the end of
each period and compounded at 10%?
(d) What
is the present value of $7,000 to be received at the end of each of 20 periods,
discounted at 5% compound interest?
Note:
Students using the tables or other sources of present and future values may
have values slightly different due to rounding.
TUTORIAL PREVIEW
(a) What
is the future value of $7,000 at the end of5 periods at8% compounded interest?
|
The future value of
$7,000 at 8% interest for 5 periods is:
|
$10,285.30
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