future and preaent value

2007-11-14 12:02 pm
1 ) The future value of saving $1500 a year for five years at an annual interest rate of 8%.
2 ) The present value of a %2000 saving account that will earn 6% interest for four years .
3 ) hal Thomas want to establish a saving fund from which a community organization could draw $800 a year for 20 years if tha account earns 6% what amount would he have to deposit now to achieve this goal??

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回答 (1)

2007-11-14 4:18 pm
✔ 最佳答案
(1) At the end of 5 years
FV = 1500(1+8%)5 + 1500(1+8%)4 + 1500(1+8%)3 + 1500(1+8%)2 + 1500(1+8%)

(2) Assume the discount rate is also 6%
PV = 2000

(3) Assume 800 is drawn at the end of each year
PV = 800/(1+6%)20 + 800/(1+6%)19 + 800/(1+6%)18 + .... + 800/(1+6%)2 + 800/(1+6%)



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