Compute the Present Value in Each of the Following Problems

question 38

Short Answer

Compute the present value in each of the following problems. Use Tables 16-1A&B or 16-2A&B or a calculator.
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a.Compute the amount that you must lend today at 10% compounded semiannually to be repaid a total (principal and interest) of $10,000 in 13 years.​
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b.Compute the amount that you must invest today at 12% compounded annually to have $1,500 in 3 years.

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Definitions:

Vaporization

The phase transition of a substance from a liquid to a gas, occurring through the processes of evaporation or boiling.

Calorie

The amount of heat energy required to raise the temperature of 1 g of water 1°C; equivalent to 4.184 joules. Compare with Kilocalorie.

pH Value

A numeric scale used to specify the acidity or basicity of an aqueous solution, with values ranging from 0 (most acidic) to 14 (most basic), and 7 being neutral.

Beer

A fermented beverage made from barley, hops, water, and yeast, commonly consumed worldwide.