4) What is the combined present value of $5,000 to be received in 5 years, $15,0

Question

4) What is the combined present value of $5,000 to be received in 5 years, $15,000 to be received in 10 years, and $25,000 to be received in 15 years with an interest rate of 9.0%? Answer: _________________________

5) Your parents have decided they want to put money away today so that beginning on your 45 th birthday that you get $10,000 for 35 years. Today you turned 21. If your parents account guarantees 8.80%, how much money do they need to put in the account today? Answer: _________________________

6) What is the present value of a perpetuity that pays $2,500 a year, if we expect interest rates to be 12.75% forever? Answer: _________________________

Explanation / Answer

As per Chegg Guidelines we answer one question per post. I have answered more than 1 question. Kindly post remaining questions in separate post to get the best answers 4) Statement showing Presnt Value Project A Particulars Time PVf@13.5% Amount PV Cash inflows                     5.00            0.6499                   5,000.00                     3,249.66 Cash inflows                   10.00            0.4224                15,000.00                     6,336.16 Cash inflows                   15.00            0.2745                25,000.00                     6,863.45 PV of Cash Inflows                   16,449.27 6) Amount per year             2,500.00 Interest Rate 12.75% Pvof perpetuity = 2500/12.75%          19,607.84

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