eg 3216 Present value 37001362 Worksheet Learning How to

# Eg 3216 present value 37001362 worksheet learning how

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(e.g., 32.16)) Present value \$ 370,013.62 Worksheet Learning Objective: 06-01 How to determine the future and present value of investments with multiple cash flows. Your company will generate \$65,000 in annual revenue each year for the next eight years from a new information database. If the appropriate interest rate is 8.25 percent, what is the present value of the savings? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Present value \$ 370,013.62 ± 2% Explanation: To find the PVA, we use the equation: PVA = C ({1 [1/(1 + r ) t ]} / r ) PVA = \$65,000{[1 (1/1.0825 8 )] / 0.0825} = \$370,013.62 Calculator Solution: Note: Intermediate answers are shown below as rounded, but the full answer was used to complete the calculation. Enter 8 8.25% \$65,000 N I/Y PV PMT FV Solve for \$370,013.62
7.2 percent APR loan for 48 months to buy the car. What will your monthly payments be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Monthly payment \$ 2,175.54 ± 2% What is the effective annual rate on this loan? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Effective annual rate 7.44 ± 2% % Explanation: We first need to find the annuity payment. We have the PVA, the length of the annuity, and the interest rate.

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