2. The following are exercises in present values: a. $100 at the end of three years is worth how much today, assuming a discount rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent?

The present value of a single sum is equal to the amount that, if invested today at the specified discount rate, would return the value of the single sum every year for a specified number of years. Select one: O True O False

Find the future values of these ordinary annuities. Compounding occurs once a year. Round your answers to the nearest cent. A. $900 per year for 4 years at 6%. B. $450 per year for 2 years at 3%. C. $800 per year for 2 years at 0%. Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent. D. $900 per year for 4 years at 6%. E. $450 per year for 2 years at 3%. F. $800 per year for 2 years at 0%.

3. To find the present value of a sum of sh. 10,000 to be received at the end of each year for the next 5 years at 10% rate, we use:       A. Present value of a single cash flow table       B. Present value of annuity table.       C. Future value of a single cash flow table       D. Future value of annuity table

Q. No. 02: Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities.$300 per year for 10 years at 10%$100 per year for 5 years at 5%$300 per year for 5 years at 0%Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due.

1. Assume that $1,000 is to be received 30 years from today. Compare the present values obtained using 0.05 and ó.20 as rates of discount.

Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due. Future value of $800 per year for 10 years at 12%: $   Future value of $400 per year for 5 years at 6%: $   Future value of $800 per year for 5 years at 0%: $

2. Present Value and Multiple Cash Flows Investment X offers to pay you $5,300 per year for eight years, whereas Investment Y offers to pay you $7,300 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent? 6. Calculating Annuity Values For each of the following annuities, calculate the present value. Annuity Payment Years Interest Rate $ 1,750 7 1,390 9 17,500 18 50,000 28 5% 10 8 14

You are comparing two annuities. Annuity A pays $110 at the end of each year for 5 years. Annuity B pays $100 at the beginning of each year for 5 years. The rate of return on both annuities is 8 percent. Which one of the following statements is correct given this information? O Annuity B has both a higher present value and a higher future value than Annuity A. Annuity A has both a higher present value and a higher future value than Annuity B. O Annuity A has the same present value and future value as Annuity B.

P100 is received at the end of one year, P500 at the end of two years, and P1000 at the end of three years. What is the aggregate present value of these receipts, assuming a discount rate of (i) 4 percent?