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1) What is the combined present value of $5,000 to be received in 5 years, $15,000 to be received in 10 years, and $25,000 to be received in 15 years with an interest rate of 9.0%?

2) Your parents have decided they want to put money away today so that beginning on your 45 th birthday that you get $10,000 for 35 years. Today you turned 21. If your parents account guarantees 8.80%, how much money do they need to put in the account today?

3) What is the present value of a perpetuity that pays $2,500 a year, if we expect interest rates to be 12.75% forever?

Financial Management, Finance

  • Category:- Financial Management
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