Question: please answer all parts You need to show/write/explain inputs to your computations to get full credit. Upload an Excel (.xls) copy to Blackboard. Question 1

please answer all parts please answer all parts You need to show/write/explain inputs to your computations

You need to show/write/explain inputs to your computations to get full credit. Upload an Excel (.xls) copy to Blackboard. Question 1 (36 points, Chapters 3 and 4): For each of the questions below, draw the time line and compute the present value or future value as required. Show all your work. Write the inputs and show what you plugged in. a. Present value of $5,000 received 10 years from today if the interest rate is 12% per year. b. Future value of $10,000 received 5 years from today if left in an account until 40 years from today, when the rate of return is 10% per year. c. Present value of $5,000 received 4 years from today and $6,000 received 20 years from today if the rate of return is 8% per year. d. Future value of the cash flows in part (c) above when evaluated 50 years from today at 8% per year. e. Present value of an annuity of 10 payments of $1,000 each starting today at t=1 and ending at t=10 when the interest rate is 10% per year. f. Future value of an annuity of 10 payments of $1,000 each, starting today at t=1 and ending at t=10 when the interest rate is 10% per year and the future value is computed for t=10. g. Present value of a growth perpetuity that starts 7 years from today, with the first payment of $1,000, a growth rate of 1% per year, and a required rate of return of 9% per year

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!