Calculate the present value of the following payments: 

a) $600 two years from now when the interest rate is 5% 

b) $600 two years from now when the interest rate is 10% 

c) $600 4 years from now when the interest rate is 10% 

d) what do these calculations indicate about the present value of payments further in the future? 

e) what do these calculations indicate about the present value as the interest rate rises

Answer rating: 100% (QA)

To calculate the present value of future payments we use the formula for present value PV FV 1 rn Wh... View the full answer