Question: 1. Answer the questions below. Be sure to show your work, and provide any excel formulas used if necessary. a. What is $500 paid 2

1. Answer the questions below. Be sure to show your work, and provide any excel formulas used if necessary.

a. What is $500 paid 2 years from now worth today? Assume that the discount rate is 5% APR with monthly compounding. Round your final answer to two decimals.

b. Suppose that you deposit $700 today in an account paying 10% APR with daily compounding. What amount will be in your account 10 years from now? Round your final answer to two decimals.

c. What is the present value of the following stream of cash flows? Assume that the cash flows occur at the end of each year and that the annual cost of capital is 9%. Round your final answer to two decimals.

Timeline	0	1	2	3
Cash Flow	0	1000	3000	2000

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