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Time Value of Money Problems Example Future Value of a PRESENT Lump Sum What will $8,000 accumulate. 1 answer below » Time Value of Money Problems Example Future Value of a PRESENT Lump Sum What will $8,000 accumulate to when invested for 10 years at 10%? Sum Invested Tme Invested (years) Interest rate (%) FVIF Future Value (FV) $5,000 10 10% 2.594 $12,970 $5,000 10 10% $12,969 Example Present Value of a FUTURE Lump Sum What is the Present Value of $1,000 to be received in 8 years from now, discounted back to the present at 3%. Sum Invested Years Discounted Interest rate (%) PVIF Present Value (PV) $1,000 8 3% Document Preview: View complete question » Time Value of Money Problems Example Future Value of a PRESENT Lump Sum What will $8,000 accumulate to when invested for 10 years at 10%? Sum Invested Tme Invested (years) Interest rate (%) FVIF Future Value (FV) $5,000 10 10% 2.594 $12,970 $5,000 10 10% $12,969 Example Present Value of a FUTURE Lump Sum What is the Present Value of $1,000 to be received in 8 years from now, discounted back to the present at 3%. Sum Invested Years Discounted Interest rate (%) PVIF Present Value (PV) $1,000 8 3% Document Preview: 5000
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Time Value of Money Problems
Sum Invested
Tme Invested (years)
Interest rate (%)
FVIF
Future Value (FV)
Example
(Using Financial Tables)
(Using Excel Function)
Present Value of a FUTURE Lump Sum
Future Value of a PRESENT Lump Sum
What will $8,000 accumulate to when invested for 10 years at 10%?
What is the Present Value of $1,000 to be received in 8 years from now, discounted back to the present at 3%.
PVIF
Present Value (PV)
Years Discounted
Payment (PMT)
Duration of Annuity (Years)
Compound Interest Rate
FVIFA
Future Value Annuity (FVA)
What is the Future Value Annuity (FVA) of $100 deposited each year for 5 years, with an interest rate of 10%
What is the Present Value Annuity of $2,500 for 10 years discounted back to the present at 7%?
Present Value of an Annuity (PVA)
Future Value of an Annuity (FVA)
PVIFA
Present Value Annuity (PVA)
Calculate the Future Values of the following:
Calculate each one with the Financial Tables and then agan using Excel functions
$6,000 invested for 13 years at 3%
$24.50 invested for 4 years at 8%
$1,000 invested for 15 years at 11%
Calculate the Present Values of the following:
$15,000 to be received 12 years from now discounted back to the present at 5%.
$400 to be received 10 years from now discounted back to the present at 3%.
$10,000 to be received 6 years from now discounted back to the present at 11%.
Calculate the Future Values of the following Ordinary Annuities:
$500 a year for 20 years compounded at 5%
$1,000 a year for 5 years compounded at 7%.
$25 a year for 4 years… Attachments: Q..docx Q.-Attachment….xlsx View less » Sep 09 2015 05:14 PM
