Computation of future values and present values


Task: (Computation of Future Values and Present Values)

Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.)

Problem 1: What is the future value of 20 periodic payments of $4,000 each made at the beginning of each period and compounded at 8%?

Problem 2: What is the present value of $2,500 to be received at the beginning of each of 30 periods, discounted at 10% compound interest?

Problem 3: What is the future value of 15 deposits of $2,000 each made at the beginning of each period and compounded at 10%? (Future value as of the end of the fifteenth period.)

Problem 4: What is the present value of six receipts of $1,000 each received at the beginning of each period, discounted at 9% compounded interest?

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Finance Basics: Computation of future values and present values
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