Computing Present Value of Single Amount Under Different Assumptions Compute the present value under each of the four separate investment options. Round interest rate percentages to two decimal places in your calculations (for example, enter .0063 for .6333333%). Round final answer to the nearest whole dollar (for example, enter final answer 2,556 for 2,555.5678). Do not use a negative sign with your answers. Investment Future Amount Compounding Annual Interest Rate Investment Period (Years) Present Value Investment A $22,000 Annually 5% 10 Answer Investment B 110,000 Semiannually 6% 5 Answer Investment C 132,000 Quarterly 8% 6 Answer Investment D 156,000 Monthly 10% 5 Answer
Computing Present Value of Single Amount Under Different Assumptions Compute the present value under each of the four separate investment options. Round interest rate percentages to two decimal places in your calculations (for example, enter .0063 for .6333333%). Round final answer to the nearest whole dollar (for example, enter final answer 2,556 for 2,555.5678). Do not use a negative sign with your answers. Investment Future Amount Compounding Annual Interest Rate Investment Period (Years) Present Value Investment A $22,000 Annually 5% 10 Answer Investment B 110,000 Semiannually 6% 5 Answer Investment C 132,000 Quarterly 8% 6 Answer Investment D 156,000 Monthly 10% 5 Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Computing Present Value of Single Amount Under Different Assumptions
Compute the present value under each of the four separate investment options.
- Round interest rate percentages to two decimal places in your calculations (for example, enter .0063 for .6333333%).
- Round final answer to the nearest whole dollar (for example, enter final answer 2,556 for 2,555.5678).
- Do not use a negative sign with your answers.
Investment | Future Amount |
Compounding | Annual Interest Rate |
Investment Period (Years) | Present Value |
---|---|---|---|---|---|
Investment A | $22,000 | Annually | 5% | 10 | Answer
|
Investment B | 110,000 | Semiannually | 6% | 5 | Answer
|
Investment C | 132,000 | Quarterly | 8% | 6 | Answer
|
Investment D | 156,000 | Monthly | 10% | 5 | Answer
|
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