Filling in the table for the Present Value amount is as follows:
Future amount desired = $150,000
Length of Time = 11 years
Rate Compounded = 8% semiannually
Table periods = 22
Rate used = 16%
Present value factor = 0.18394
PV amount = $27,591
Using an online finance calculator, we can compute the present value of the desired future value at 8% compounded semiannually (16%) for 11 years.
N (# of periods) = 22 semiannual periods (11 years x 2)
I/Y (Interest per year) = 16%
PMT (Periodic Payment) = $0
FV (Future Value) = $150,000
P/Y (# of periods per year) = 2
C/Y (# of times interest compound per year) = 2
Results:
PV = $27,591
Total Interest = $122,409
Future amount desired = $150,000
Length of Time = 11 years
Rate Compounded = 8% semiannually
Table periods = 22
Rate used = 16% (8% x 2)
Present value factor = 0.18394 ($27,591/$150,000)
PV amount = $27,591