6. Future values If you invest $100 at an interest rate of 15%, how much will you have at the end of eight years? 

7. Future values* Compute the future value of a $100 investment for the following combinations of rates and times. 

a. r = 6%, t = 10 years

b. r = 6%, t = 20 years

c. r = 4%, t = 10 years

d. r = 4%, t = 20 years

8. Future values In the five years preceding the end of 2016, the price of Amazon shares rose

by 34% a year. If you had invested $100 in Amazon at the beginning of this period, how much

would you have by the end of the period?

9. Discount factors

a. If the present value of $139 is $125, what is the discount factor?

b. If that $139 is received in year 5, what is the interest rate?

10. Present values If the cost of capital is 9%, what is the PV of $374 paid in year 9?

11. Present values A project produces a cash flow of $432 in year 1, $137 in year 2, and $797 in

year 3. If the cost of capital is 15%, what is the project's PV? If the project requires an investment

of $1,200, what is its NPV?

12. Present values What is the PV of $100 received in:

a. Year 10 (at a discount rate of 1%)?

b. Year 10 (at a discount rate of 13%)?

c. Year 15 (at a discount rate of 25%)?

d. Each of years 1 through 3 (at a discount rate of 12%)?

Answer rating: 100% (QA)

6 To calculate the future value of an investment we can use the formula Future Value Present Value 1 Interest RateNumber of Periods Given that the present value is 100 the interest rate is 15 and the ... View the full answer