Ch4 1. You have just received a windfall from an investment you made in a friend's business. She will be paying you $28,273 at the end of this year, $56,546 at the end of next year, and $84,819 at the end of the year after that (three years from today). The interest rate is 11.6% per year a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)? 2. Suppose you receive S170 at the end of each year for the next three years a. If the interest rate is 6%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? C. Suppose you deposit the cash flows in a bank account that pays 6% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)? 3, Assume you can earn 8.1% per year on your investments a. If you invest $190,000 for retirement at age 30, how much will you have 35 years later for retirement? b. If you wait until age 40 to invest the S190,000, how much will you have 25 years later for retirement? c. Why is the difference so large