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156MB\ xuestions anla Proderis\ Questions with online Excel templates or datasets are marked with
A and can be found on Connect.\ Basic\ Present Values. Compute the present value of a
$100 cash flow for the following combinations of discount rates and times: ( LO2)\ a.
r=8%,t=10 years\ b.
r=8%,t=20 years\ c.
r=4%,t=10 years\ d.
r=4%,t=20 years\ Future Values. Compute the future value of a
$100 cash flow for the same combinations of rates and times as in problem 1. ( LO1)\ Future Values. You deposit
$1,000 into your bank account. If the bank pays
4% simple interest, how much will you accumulate in your account after 10 years? If the bank pays compound interest, how much of your earnings will be interest on interest? (
LO1)\ Present Values. You will require
$700 in 5 years. If you earn
5% interest on your funds, how much will you need to invest today in order to reach your savings goal? (
LO )\ Calculating Interest Rate. Find the interest rate implied by the following combinations of present and future values: ( LO4)
