Question: hear perti Chapter 5 Introduction to Valuation: The Time Value of Money ED REVIEW AND SELF-TEST PROBLEMS CHAPTER REVIE 1 Calculating Futu ulating Future Values
hear perti Chapter 5 Introduction to Valuation: The Time Value of Money ED REVIEW AND SELF-TEST PROBLEMS CHAPTER REVIE 1 Calculating Futu ulating Future Values Assume you deposit $10,000 today in an account that 6 percent interest. How much will you have in five years? Calculating Present Values Suppose you have just celebrated your 19th birthday. A rich uncle has set up a trust fund for you that will pay you $150,000 when you turn 30. If the relevant discount rate is 9 percent, how much is this fund worth today? 53 Calculating Rates of Return You've been offered an investment that will double your money in 10 years. What rate of return are you being offered? Check your answer using the Rule of 72. 54 Calculating the Number of Periods You've been offered an investment that will pay you 9 percent per year. If you invest $15,000, how long until you have $30,000? How long until you have $45,000? DARLEMS
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