$$

$$

Cash Flow

Present Discounted Value

Interest Rate

is based on the notion that a dollar paid in the future is less valuable than a dollar paid today.

Part $2$

The present value of a loan in which

$$$$50005000$

is to be paid out a year from today with the interest rate equal to

$55\%$

is

$$$enter your response here.

$($Round your response to the neareast two decimal$$ place$)$

Part $3$

If a loan is paid after two$$ years, and the amount

$$$$10001000$

is to be paid then with a corresponding

$11\%$

interest$$ rate, the present value of the loan is

$$$enter your response here.

$($Round your response to the neareast two decimal$$ place$)$