Determine the present value if $5,000 is received in the future(ie. at the end of each indicated time period) in each of the following situations. 5% for 10 years, 7% for 7 years and 9 % for 4 years

I will do the first, you do the others in the same way

Let me know what you get.

PV = ?
Amount = 5000
i = .05
n = 10

PV(1 + i)^n = Amount

PV(1.05)^10 = 5000
PV = 5000/1.05^10
= 5000/1.628894627
= $3069.57

How do you get the rest ?

To determine the present value of a future amount, we need to use the present value formula:

PV = FV / (1 + r)^n

Where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.

Let's calculate the present value for each situation:

1. 5% for 10 years:
PV = $5,000 / (1 + 0.05)^10
PV = $5,000 / (1.05)^10
PV ≈ $3,790.79

2. 7% for 7 years:
PV = $5,000 / (1 + 0.07)^7
PV = $5,000 / (1.07)^7
PV ≈ $3,366.09

3. 9% for 4 years:
PV = $5,000 / (1 + 0.09)^4
PV = $5,000 / (1.09)^4
PV ≈ $3,498.86

Therefore, the present value of $5,000 received in the future at 5% for 10 years is approximately $3,790.79, at 7% for 7 years is approximately $3,366.09, and at 9% for 4 years is approximately $3,498.86.

To determine the present value of a future amount, we need to use the concept of discounting. Discounting involves calculating the value of future cash flows in today's dollars, taking into account the time value of money.

The present value is calculated using the formula:

PV = FV / (1 + r)^n

Where PV is the present value, FV is the future value, r is the interest rate, and n is the number of periods.

Let's calculate the present value for each situation:

1. 5% for 10 years:
PV = $5,000 / (1 + 0.05)^10
≈ $3,834.93

2. 7% for 7 years:
PV = $5,000 / (1 + 0.07)^7
≈ $3,154.78

3. 9% for 4 years:
PV = $5,000 / (1 + 0.09)^4
≈ $3,643.21

So, the present values for the given situations are approximately $3,834.93, $3,154.78, and $3,643.21, respectively.