Finance

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

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  1. 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

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