What is the future value at time t=3 for a present value of PV=$100 (e.g., t=0) if the interest rate is r=0.10 (e.g., r=10%)? 2) What is the future value at time t=18 for a present value of PV=$1525 (e.g., t=0) if the interest rate is r=0.085 (e.g., r=8.5%)? 3) What is the present value of a future value of FV=$500 at time t=5 if the interest rate is r=0.10 (e.g., r=10%)? 4) What is the present value for a future value of FV=$500,000 at time t=36 if the interest rate is r=0.05 (e.g., r=5%)? 5) What is the interest rate “r” if PV=$100 and the FV=$350 in year t=12? 6) What is the interest rate “r” if PV=$1250 and the FV=$2150 in year t=10? 7) How long will it take to double your investment if the interest rate is r=0.06 (r=6%)?8) How long will it take to increase your investment by 2.5 times if the interest rate is r=0.14 (r=14%)?9) Which is the better option if the interest rate is r=0.10 (r=10%)? Show all work used to arrive at your answer. a. Option I: Receive $1000 today at time t=0. b. Option II: Receive $1615 at time t=5.10) Which is the better option if the interest rate is r=0.07 (r=7%)? Show all work used to arrive at your answer. a. Option I: Receive $510 today at time t=0. b. Option II: Receive $1000 at time t=10.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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1) What is the future value at time t=3 for a present value of PV=$100 (e.g., t=0) if the interest rate is r=0.10 (e.g., r=10%)? 2) What is the future value at time t=18 for a present value of PV=$1525 (e.g., t=0) if the interest rate is r=0.085 (e.g., r=8.5%)? 3) What is the present value of a future value of FV=$500 at time t=5 if the interest rate is r=0.10 (e.g., r=10%)? 4) What is the present value for a future value of FV=$500,000 at time t=36 if the interest rate is r=0.05 (e.g., r=5%)? 5) What is the interest rate “r” if PV=$100 and the FV=$350 in year t=12? 6) What is the interest rate “r” if PV=$1250 and the FV=$2150 in year t=10? 7) How long will it take to double your investment if the interest rate is r=0.06 (r=6%)?8) How long will it take to increase your investment by 2.5 times if the interest rate is r=0.14 (r=14%)?9) Which is the better option if the interest rate is r=0.10 (r=10%)? Show all work used to arrive at your answer. a. Option I: Receive $1000 today at time t=0. b. Option II: Receive $1615 at time t=5.10) Which is the better option if the interest rate is r=0.07 (r=7%)? Show all work used to arrive at your answer. a. Option I: Receive $510 today at time t=0. b. Option II: Receive $1000 at time t=10.

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