What is the present value of:
1. $8,000 received in 10 years at 6 percent?
2. $16,000 received in 5 years at 12 percent?
3. $25,000 received in 15 years at 8 percent?
4. $1,000 received in 40 periods at 20 percent?
2006-09-14 07:23:43 · 5 answers · asked by Anonymous in Business & Finance ➔ Investing
not up for the calcs, if you can afford microsoft excell , make some spredsheets
its like principle= principle plus (prin * int.)
at 14% it doubles every 4 years roughly
2006-09-14 07:27:49 · answer #1 · answered by agropelter 3 · 1⤊ 0⤋
1000 received in 40 periods at 20 percent
2006-09-14 14:44:11 · answer #2 · answered by Hugo E V 1 · 0⤊ 0⤋
Basic Finance question... However, is this compounded annually, monthly, etc? Generally, ther are five factors in the finance equasion.. (Period/s, Present Value, Future Value, Payments, and Interest Rate). Google "finance calculators" and you will get online calculators where you can plug in values to get your answer. Or but a Texas Instruments BAII or Hewlett Packard Business Analyst.
2006-09-14 14:29:48 · answer #3 · answered by Texas M.B.A. 2 · 0⤊ 0⤋
The formula that you want to use is::
PV = C/(1+r)^n
where C is the payment received, r is the one period rate and n is the number of periods.
For example -- the first one is:
PV = 8000/(1.06)^10 = 3,350.57
This assumes one compounding period per year.
2006-09-14 15:47:21 · answer #4 · answered by Ranto 7 · 0⤊ 0⤋
yahoo finance offers several good calculators which are easy to use. im too busy to do the math for you. good luck
2006-09-14 14:28:35 · answer #5 · answered by ckhhuff2438 1 · 0⤊ 0⤋