following time value of money questions assuming the interest rate is 12 percent.

1. What is the present value of $2,100 to be received in four years?

2. What is the present value of $2,100 to be received in eight years?

3. What will be the value in seven years of $12,600 invested today?

4. How much would you pay for the right to receive $5,600 at the end of year 1, $4,600 at the end of year 2, and $8,600 at the end of year 5?

5. How long will it take for a $2,600 investment to double in value?

6. What will be the value in 20 years of $2,400 invested at the end of each year for the next 20 years?

Note: Round your answers to 2 decimal places.

Answer rating: 100% (QA)

1 The present value of 2100 to be received in four years can be calculated using the formula PV FV 1 ... View the full answer