Saved Problem 5-14 Present Values (LO2) What is the present value of the following cash-flow stream if the interest rate is 5%? (Do not round intermediate calculations, Round your answer to 2 decimal places.) Year 1 2 3 Cash Flow - $130 330 230 Present value A property will provide $7,735 at the end of each year forever. If its value is $119,000, what must be the discount rate? (Enter your answers as a percent rounded to 2 decimal places.) Discount rate V A local bank will pay you $189 at the end of each year for your lifetime if you deposit $3,600 in the bank today. If you plan to live forever, what interest rate is the bank paying? (Enter your answers as a percent rounded to 2 decimal places.) Interest rate Problem 5-22 Perpetuities (L03) A local bank advertises the following deal: Pay us $100 at the end of each year for 11 years and then we will pay you for your beneficiaries) $100 at the end of each year forever. a. Calculate the present value of your payments to the bank if the interest rate is 775%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value b. What is the present value of a $100 perpetuity deferred for 11 years if the interest rate is 775%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value c. Is this a good deal? ONO Yes