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FIN 370 WK 3 - PV 5-4A

Course: FI 370, Spring 2012
School: DeVry Houston
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5-4A Problem (Present value) What is the present value of the following future amounts? 5-4. a. PV = FV n 1 (1 + i ) n PV PV PV = = = 1 (1 + 0.1) 10 $800 $800 (0.386) $308.80 b. PV = FV n 1 (1 + i ) n PV PV PV = = = $300 1 (1 + 0.05) 5 $300 (0.784) $235.20 c. PV = FV n 1 (1 + i ) n PV PV PV = = = 1 $1,000 (1 + 0.03) 8 $1,000 (0.789) $789...

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