# Exponential and Reciprocal Functions

Marshall 6.26 a, b, c, and d only
Using a present value table, your calculator, or a computer program present value function, answer the following questions:
Microsoft Excel's Present Value function was used to answer these questions.
a. What is the present value of nine annual cash payments of \$4,000, to be paid at the end of each year using an interest rate of 6%?
The present value of nine annual cash payments of \$4,000 paid over a nine year period (totaling \$36,000), at an interest rate of %6 is \$27,206.77.

b. What is the present value of \$15,000 to be paid at the end of 20 years, using an interest rate of 18%?
The present value of \$15,000 at the end of a 20 year period with an interest rate of 18% would be \$547.58.

c. How much cash must be deposited in a savings account as a single amount in order to accumulate \$300,000 at the end of 12 years, assuming that the accounting will earn 10% interest?
The one time amount to be deposited into a savings account, to accumulate \$300,000 at the end of a 12 year period with an interest rate of 10% would be \$95,590.00

d. How much cash must be deposited in a savings account (as a single amount) in order to accumulate \$50,000 at the end of seven years, assuming that the account will earn 12% interest?