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Time Value of Money Problem: For each of the following questions, assume a discount rate o

Time Value of Money Problem: For each of the following questions, assume a discount rate o

Time Value of Money Problem:

For each of the following questions, assume a discount rate of 5%.

A.) What is the value today of $1,000 received in one year?
B.) What is the value in one year of $1,000 received today?
C.) What is the value today of $1,000 received in five years?

D.) What is the value in five years of $1,000 received today?
E.) What is the value today of $100 received at the end of each of the next five years?
F.) What is the value in five years of five annual payments of $100, beginning one year from today?

G.) What is the value today of $10 yearly payments, beginning in one year, continuing forever
H.) What is the value in five years of $10 yearly payments, beginning in one year, continuing forever?

Rosa Parks 07-Nov-2017

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