What is the present value of having $22,000 in 6 years, when the interest rate is 4% ? Place your answer with two decimal 2 places in cell B3.3 Present Value = 4 If the interest rate changed to 6%, would the present value 5 increase or decrease? Why? Answer and explain why in cell A 6. 6 If the time frame was changed from 6 years to 5 years, would the present value of having $22,000 in the future increase or 8 decrease? Why? Answer and explain why in cell A8.

How much money will you have in seven yearsif you deposit $7,000 in the bank at 8.5% interestcompounded daily?

Q3: You may have already won $2 millions. You will receive $100,000 per year for 20 years. Suppose you are considering the following two options: First Choice: You save your winning for the first 7 years and then spend every cent of the winning in the remaining 13 years Second Choice: You do the reverse, spending for 7 years and then saving for 13 years If you can save wining at 7% interest, how much would you have at the end of 20 years and what interest rate on your saving will make the two options equivalent ?

10 Using the Rule of 72, calculate how much $10,000 will grow over 30 years at 2% annual return; and 10% annual return?

Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 5​% is $. ​(Round your response to the neareast two decimal​ place) Part 3 If a loan is paid after two​ years, and the amount $7000 is to be paid then with a corresponding 7​% interest​ rate, the present value of the loan is ​$. ​(Round your response to the neareast two decimal​ place)

Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which ​$1000 is to be paid out a year from today with the interest rate equal to 5% is $.​(Round your response to the neareast two decimal​ place) Part 3 If a loan is paid after two​ years, and the amount ​$7000 is to be paid then with a corresponding 7​%interest​ rate, the present value of the loan is $.​(Round your response to the neareast two decimal​ place)

Economics In 54 months time you expect a cash flow of $3 million. Calculate it’s present value (PV) given the 54-month interest rate is currently 4%, with a volatility of 120 basis points (bps). Explain, using equations with properly-defined mathematical notation, how to map this cash flow to vertices at 4 years and 5 years, in such a way that the volatility of the present value of the mapped cash flow remains at 120 bps. Suppose the 4-year rate has a volatility of 110 bps and the 5-year rate has a volatility of 150 bps, and their correlation is 0.9. How much should be mapped to each vertex. Give your answer in PV terms and round your answers to whole $ values.

2) Two annuity dues in perpetuity have a common present value of $2, 000 and a common effective anmual interest rate i. The first anmuity makes payments of $100 at the beginning of every three years and the second makes payments of X at the beginning of every three months. Find X.

1. Future and present values Suppose a relative has promised to give you $1,000 as a wedding gift the day you get engaged. Assuming a constant interest rate of 5%, consider the present and future values of this gift, depending on when you become engaged. Complete the first row of the following table by determining the value of the gift in one and two years with interest if you become engaged today and save the money. Date Received Today In 1 year In 2 years Present Value (Dollars) 1,000.00 Value in One Year (Dollars) 1,000.00 Value in Two Years (Dollars) 1,000.00 Now complete the first column of the previous table by computing the present value of the gift if you get engaged in one year or two years. The present value of the gift is if you get engaged in one year than it is if you get engaged in two years.

9. In how many years will $1,500 yield an interest of 5200 at 2% simple interest?