To part a by 1.08. What is the value of your investment after three years? Multi

Question

To part a by 1.08. What is the value of your investment after three years? Multiply your answer to part b by 1.08. This gives your final answer. Confirm that your final answer is correct by going to Appendix A (future value of $1), and looking up the future value for n = 3, and i = 8 percent. Multiply this tabular value by $2,500 and compare your answer to the answer in part c. There may be a slight difference due to rounding. what is the present value of: $8,000 in 10 years at 6 percent? $16,000 in 5 years at 12 percent? $525.000 in 15 years at 8 percent? What is the present value of $ 100.000 to be received after 40 years with an 18 percent discount rate? b. Would the present value of the funds in part a be enough to buy a $140 concert ticket? You will receive $4,000 three years from now. The discount rate is 10 percent. What is the value of your investment two years from now? Multiply $4,000 Times.909 (one year's discount rate at 10 percent). A What is the value of your investment one year from now? Multiply your answer to part a by.909 (one year's discount rate at 10 percent). What is the value of your investment today? Multiply your answer to pan b by.909 (one year's discount rate at 10 percent). Confirm that your answer to part c is correct by going to Appendix B (present value of $1) for n = 3 and i = 10%. Multiply this tabular value by 54.000 and compare your answer to the answer in part c. There may be a slight difference due to rounding.

Explanation / Answer

Appendix B

PV=FV*PV(18%,40 Periods)

3a. $1,00,000*.001=$100b. No. You only have $100 in PV

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