For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (/= Interest rate and n= number of years) FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of S1 and PVAD of $1 (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) 1 i 60% 2 3 Present Value Future Value 5 58.000 $ 21,302 5 72.000 5 11.7185 44 500 641345 115.000 $ 11 354 6 18 10.094 $ 10 5 80% 7

Given,

Interest is compounded annually

Formula that is relevant here is,

Future value = Present value (1 + Interest rate)^Number of years

F.V = P.V (1 + i) ^n

1. Present value, P.V

F.V = $58,000

i = 6%

n = 6

F.V = P.V (1 + i) ^n

58,000 = P.V (1+6/100)^6

58,000 = P.V (1.06)^6

58,000 = P.V (1.4185)

P.V = 58,000/1.4185

P.V = 40888 (approximately)

2. Interest rate, i

F.V = P.V (1 + i) ^n

72000 = 21302 (1+i)^18

72000/21302 = (1+i)^18

3.3800 = (1+i)^18

1+i = 18^th root of 3.3800

1+i = 1.07

i = 1.07 -1

i = 0.07 or 7%

3. Number of years, n

F.V = P.V (1 + i) ^n

44,500 = 11718 (1+10/100)^n

44500/11718 = (1.1)^n

3.7976 = 1.1^n

n = 14

4. Interest rate, i

F.V = P.V (1 + i) ^n

145,000 = 64,134 (1+i)^14

145,000/64,134 = (1+i)^14

2.2609 = (1+i)^14

1+i = 14^th root of 2.2609

1+i = 1.06

i = 1.06 -1

i = 0.06 or 6%

5. Future Value, F.V

F.V = P.V (1 + i) ^n

F.V = 11,354 (1+8/100)^7

F.V = 11354 (1.08)^7

F.V = 11354 (1.7138)

F.V = 19,458