Calculator or a computer program present value function


Using a present value table (Table 6-4 and Table 6-5), your calculator, or a computer program present value function, calculate the present value for the following: (Use appropriate factor(s) from the tables provided.)

a. A car down payment of $30,000 that will be required in five years, assuming an interest rate of 8%.

b. A lottery prize of $6 million to be paid at the rate of $300,000 per year for 20 years, assuming an interest rate of 8%.

c. The same annual amount as in part b, but assuming an interest rate of 10%.

d. A capital lease obligation that calls for the payment of $8,000 per year for 10 years, assuming a discount rate of 12%

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Accounting Basics: Calculator or a computer program present value function
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