We appreciate your visit to Determine the present value if 5 000 is received in the future at the end of seven years with an interest rate of 7 percent. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!
Answer :
Final Answer:
- For $2,114: The present value is approximately $1,465.84
- For $4,114: The present value is approximately $2,848.56
- For $3,114: The present value is approximately $2,155.59
- For $1,314: The present value is approximately $910.30
Explanation:
To calculate the present values of future amounts at a 7 percent interest rate for seven years, you can use the following formula for the present value (PV) of a single future sum:
PV = FV / (1 + r)^n
Where:
PV is the present value.
FV is the future value.
r is the interest rate.
n is the number of years.
Let's calculate the present values for each of the indicated future amounts:
For $2,114:
PV = 2,114 / (1 + 0.07)^7
PV ≈ $1,465.84
For $4,114:
PV = 4,114 / (1 + 0.07)^7
PV ≈ $2,848.56
For $3,114:
PV = 3,114 / (1 + 0.07)^7
PV ≈ $2,155.59
For $1,314:
PV = 1,314 / (1 + 0.07)^7
PV ≈ $910.30
To know more about Present value visit:
brainly.com/question/14240090
#SPJ11
Thanks for taking the time to read Determine the present value if 5 000 is received in the future at the end of seven years with an interest rate of 7 percent. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!
- Why do Businesses Exist Why does Starbucks Exist What Service does Starbucks Provide Really what is their product.
- The pattern of numbers below is an arithmetic sequence tex 14 24 34 44 54 ldots tex Which statement describes the recursive function used to..
- Morgan felt the need to streamline Edison Electric What changes did Morgan make.
Rewritten by : Barada
