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\ xuestions anla Proderis\ Questions with online Excel templates or datasets are marked with

A

and can be found on Connect.\ Basic\ Present Values. Compute the present value of a

$100

cash flow for the following combinations of discount rates and times: ( LO2)\ a.

r=8%,t=10

years\ b.

r=8%,t=20

years\ c.

r=4%,t=10

years\ d.

r=4%,t=20

years\ Future Values. Compute the future value of a

$100

cash flow for the same combinations of rates and times as in problem 1. ( LO1)\ Future Values. You deposit

$1,000

into your bank account. If the bank pays

4%

simple interest, how much will you accumulate in your account after 10 years? If the bank pays compound interest, how much of your earnings will be interest on interest? (

LO1)\ Present Values. You will require

$700

in 5 years. If you earn

5%

interest on your funds, how much will you need to invest today in order to reach your savings goal? (

LO

)\ Calculating Interest Rate. Find the interest rate implied by the following combinations of present and future values: ( LO4)

Questions with online Excel templates or datasets are marked with A and can be found on Connect. Basic 1. Present Values. Compute the present value of a $100 cash flow for the following combinations of discount rates and times: ( a. r=8%,t=10 years b. r=8%,t=20 years c. r=4%,t=10 years d. r=4%,t=20 years 2. Future Values. Compute the future value of a $100 cash flow for the same combinations of rates and times as in problem 1. (01) 3. Future Values. You deposit $1,000 into your bank account. If the bank pays 4% simple interest, how much will you accumulate in your account after 10 years? If the bank pays compound interest, how much of your earnings will be interest on interest? ( LO1) 4. Present Values. You will require $700 in 5 years. If you earn 5% interest on your funds, how much will you need to invest today in order to reach your savings goal? ( LO2) 5. Calculating Interest Rate. Find the interest rate implied by the following combinations of present and future values: ()

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