Question: 2. Complete the table below. 242 625 Present value Interest rate 7.0% 6.0% Years 6 2 Future value 15,451 303 1,330 On 12/31/11 you are

2. Complete the table below. 242 625 Present value Interest rate 7.0% 6.0% Years 6 2 Future value 15,451 303 1,330 On 12/31/11

2. Complete the table below. 242 625 Present value Interest rate 7.0% 6.0% Years 6 2 Future value 15,451 303 1,330 On 12/31/11 you are considering purchasing a security that pays annual interest of $50 forever. What is the value of this investment... ...on 12/31/11 if the market rate for such investments is 5%? ...on 12/31/16 if the market rate is 5%? ...on 12/31/21 if the market rate is 10%? INPUT AREA Payment Market rates @: 12/31/2011 5% 12/31/2016 5% 12/31/2021 10% OUTPUT AREA Value on: 12/31/2011 12/31/2016 12/31/2021

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