Present Value of a Sum and Compound Discount
Using the present value tables, solve the following problems:
1. What is the present value on January 1, 2010 of $30,000 due on January 1, 2015 and discounted at 12% compounded annually?
2. What is the present value on July 1, 2010 of $8,000 due January 1, 2015 and discounted at 16% compounded quarterly?
3. What is the compound discount on $8,000 due at the end of five years at 10% compounded annually?