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# Suppose that Adam has $20 in the present. Calculate the future value of that amount in 1 year when the interest rate is 80%. (Do not include a $ sign in your response. Round to the nearest two decimal

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## Suppose that Adam has $20 in the present. Calculate the future value of that amount in 1 year when the interest rate is 80%. (Do not include a $ sign in your response. Round to the nearest two decimal places if necessary.) Answer: Suppose that Zoe will receive $102 in 1 year. Calculate the present discounted value of that amount when the interest rate is 70%. (Do not include a $ sign in your response. Round to the nearest two decimal places if necessary.) Answer: Suppose that Zelda will receive $115.60 in 2 years. Calculate the present discounted value of that amount when the interest rate is 70%. (Do not include a $ sign in your response. Round to the nearest two decimal places if necessary.) Answer: Suppose that Clair was going to receive $40 next year and then the same amount again in 2 years. What is the total present discounted value of that payment stream when the interest rate is 30%? (Do not include a $ sign in your response. Round to the nearest two decimal places.) Answer: Suppose that Daniel was going to receive $90 next year and then the same amount again every year forever. What is the total present discounted value of that payment stream when the interest rate is 50%? (Do not include a $ sign in your response. Round to the nearest two decimal places.) Answer:

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**Related Book For**

## Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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