Essay
Using the compound interest tables, answer each of the following questions.
Required:
a. What is the present value on January 1, 2014, of $50,000 due on January 1, 2020, and discounted at 7% compounded annually?
b. What is the present value on January 1, 2014, of $8,000 due on January 1, 2022, and discounted at 10% compounded semiannually?
Correct Answer:
Verified
a. PV = FV × (fn = 6, i = 7%)
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Correct Answer:
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