For each of the following, compute the present value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)): Present Value Years Interest Rate Future value $ 12 6 % $ 15,051 3 12 47,557 28 13 882,073 30 10 546,164 Explanation: To find the PV of a lump sum, we use: PV = FV / (1 + r)t PV = $15,051 / (1.06)12 = $ 7,479.89 PV = $47,557 / (1.12)3 = $ 33,850.13 PV = $882,073 / (1.13)28 = $ 28,794.41 PV = $546,164 / (1.10)30 = $ 31,299.87 Calculator Solution: Note: Intermediate answers are shown below as rounded, but the full answer was used to complete the calculation. Enter 12 6% $15,051 N I/Y PV PMT FV Solve for $7,479.89 Enter 3 12% $47,557 N I/Y PV PMT FV Solve for $33,850.13 Enter 28 13% $882,073 N I/Y PV PMT FV Solve for $28,794.41 Enter 30 10% $546,164 N I/Y PV PMT FV Solve for $31,299.87

For each of the following, compute the present value (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)):

 

Present Value	Years		Interest Rate			Future value
$	12		6	%		$	15,051
	3		12				47,557
	28		13				882,073
	30		10				546,164

Explanation:

To find the PV of a lump sum, we use:

 

PV = FV / (1 + r)t

PV = $15,051 / (1.06)12	=	$	7,479.89
PV = $47,557 / (1.12)3	=	$	33,850.13
PV = $882,073 / (1.13)28	=	$	28,794.41
PV = $546,164 / (1.10)30	=	$	31,299.87

Calculator Solution:

Note: Intermediate answers are shown below as rounded, but the full answer was used to complete the calculation.

Enter

12

6%

$15,051

N

I/Y

PV

PMT

FV

Solve for

$7,479.89

Enter

3

12%

$47,557

N

I/Y

PV

PMT

FV

Solve for

$33,850.13

Enter

28

13%

$882,073

N

I/Y

PV

PMT

FV

Solve for

$28,794.41

Enter

30

10%

$546,164

N

I/Y

PV

PMT

FV

Solve for

$31,299.87