Determine The Percent Values If $5000 Is Received In The Future

Chapter 9: P6Determine the percent values if $5000 is received in the future (i.e. at the end of each indicated time period) in each of the following situations PV factor = (1 + i ) ^ -N where ( i= Rate of Return and N = Number of Periods )PV = C * PV Factor, where C = Cash Flow at Period 15% for 10 years$5000 (.614) = $30707% for 7 years$5000(.623) = $31159% for four years$5000(.708) = $3540Chapter 9: P9Assume you are planning to invest $5,000 each year for six years and will earn 10 percent per year. Determine the future value of this annuity if your first $5,000 is invested at the end of the first year.FV=(P((1+i)^n-1)/i ;where FV = future value, i= rate of return , n= number of periods FV=(5000((1.1)^6-1)/0.1FV=(5000((1.771561)-1)/0.1FV=3857.81/0.1 = $38,578.05Chapter 9: P10Determine the present value now of an investment of $3,000 made one year from now and an additional $3,000 made two years from now if the annual discount rate is 4 percent. PV factor = (1 + i ) ^ -N where ( i= Rate of Return and N = Number