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Also attached as a file: QUESTION 1 What is the present value of a series of $3,000 payments you expect to receive for six yearsbeginning two years from today, that is from years 2-7? The interest...

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Also attached as a file:

QUESTION 1

What is the present value of a series of $3,000 payments you expect to receive for six yearsbeginning two years from today, that is from years 2-7? The interest (discount) rate is 8%.

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QUESTION 2

You expect to receive $2000 per year for the next six years except in year 3 when you will receive no payment ($0). What is the present value of these payments if the interest rate is 12%? The first payment begins one year from today.

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QUESTION 3

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What is the future value of these payments in year 6 if the interest rate is 14%?

Year 2 - $3000
Year 4 - $5000
Year 6 - $7000

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Answered Same Day Sep 06, 2021

Solution

Chirag answered on Sep 06 2021
173 Votes
Sheet1
    Q. 1    PAYMENT RECEIVABLE    3000    3000    3000    3000    3000    3000    3000    3000
        YEAR    0    1    2    3    4    5    6    7
        Discount Rate (8%)        0.9256    0.8573    0.7938    0.735    0.6805    0.6302    0.5835
        Present Value (PV)        2776.8    2571.9    2381.4    2205    2041.5    1890.6    1750.5
        PV (For 2-7)                                12,840.90
    Q. 2    PAYMENT...
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