Computing Present Value of Single Amount Under Different Assumptions
Compute the present value under each of the four separate investment options.
Investment |
Future |
Compounding |
Annual |
Investment Period (Years) |
Present |
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
|