Question: A B C D E F G 1 Suppose the risk free interest rate is 4%. Calculate the following using the EXCEL functions. 2

A B C D E F G 1 Suppose the risk free

A B C D E F G 1 Suppose the risk free interest rate is 4%. Calculate the following using the EXCEL functions. 2 3 Having $500 today is equivalent to having what amount in one year? 4 Present value $500 4% 5 6 7 8 9 Having $500 in one year is equivalent to having what amount today? 10 Present value 11 Rate 12 Time Future 23wN 13 14 17 18 2 3 4 5 22 Rate Time Future 15 Having $500 over five years is equivalent to having what amount today? 16 Present value $500 4% 23 24 25 Rate Time Future 1 year 19 20 21 Investing $100 over five years is equivalent to having what amount today? value $100 4% 4% Rate Time Future 1 year $500.00 5 year 5 year

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