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Present value concept Answer each of the following questions, a. How much money would you have to invest today to accumulate $3,600 after 12 years if the rate of return on your investment is 7%? b. What is the present value of $3,500 that you will receive after 12 years of the discount rate is 7%? c. What is the mout you would spend today for an investment that will pay $3,600 in 12 years if your opportunity cost is 7%? d. Compare, contrast, and discuss your findings in part a through e. a. A single investment made today, earning 7% annual interest, worth $3,800 at the end of 12 years is $(Round to the nearest cent.) b. The present value of 53,600 to be received at the end of 12 years, if the discount rate is 7%, is $ (Round to the nearest cenit.) c. The most you would spend today for an investment that will pay $3,600 in 12 years if your opportunity cost is 7% is $ (Round to the nearest cont.) d. Compare, contrast, and discuss your findings in part a through G. (Select all answers that apply) A. In portu a and e. 93.600 is the future volue, FV. In pait b. 3,000 is the present value, PV. Therefore,parts a and a have the same answer, while part b has a different answer B. In all three case you are solving for the present value, PV, which is $1,598.44 C. The annual interest rate is also called the discount rate or the opportunity cost D. In all the cases, the answer is 51,598,44. In parta, it is the payment, PMT In part b, it is the present value. PV. In parte, it is the future value, FV

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