PRESENT VALUE:

1. Find the present value of the following sets of payments if the discount rate is (a) 10% and (b) 16%

2. Find the discount rates for the following situations.

Investment Number of Years

Case Periodic Receipts Discount Rate ?
Required Now for Receipts
i 3,605.00 1,000.00 5
ii 12,300.00 2,000.00 10
iii 9,380.00 3,000.00 5

3. Fill in the blanks for each of the following independent situations. All involve a single payment to be
received at the end of the number of years given.

4. Fill in the blanks for each of the following situations. All involve streams of equal annual payments.
Round the calculations to the nearest P1.