the present value of 100 000 to be received in five years at an interest rate of 1 382594

The present value of $100,000 to be received in five years at an interest rate of 16%, compounded annually, is $47,610. Required: Using a present value table (Table 6 4 and Table 6 5), your calculator, or a computer program present value function, calculate the present value of $100,000 for each of the following items (parts a”f) using these facts, except (a) Interest is compounded semiannually. (Round pv factor to 4 decimal places, and the final answer to nearest whole dollar amount. Omit the “$” sign in your response.) Present value $ (b) Interest is compounded quarterly. (Round pv factor to 4 decimal places, and the final answer to nearest whole dollar amount. Omit the “$” sign in your response.) Present value $ (c) A discount rate of 12% is used. (Round pv factor to 4 decimal places, and the final answer to nearest whole dollar amount. Omit the “$” sign in your response.) Present value $ (d) A discount rate of 20% is used. (Round pv factor to 4 decimal places, and the final answer to nearest whole dollar amount. Omit the “$” sign in your response.) Present value $ (e) The cash will be received in three years. (Round pv factor to 4 decimal places, and the final answer to nearest whole dollar amount. Omit the “$” sign in your response.) Present value $ (f) The cash will be received in seven years. (Round pv factor to 4 decimal places, and the final answer to nearest whole dollar amount. Omit the “$” sign in your response.) Present value $ rev: 08_08_2011 check my workeBook Linkreferences Worksheet Difficulty: Easy Learning Objective: 06 10 The role of time value of money concepts in financial reporting and their usefulness in decision making.

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