{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# tvm2 - 6 How many years would it take \$1,000 to grow to...

This preview shows pages 1–2. Sign up to view the full content.

1. What is the approximate present value of \$100 to be received at the end of 5 years assuming a 12% per year discount rate? 2. What is the approximate present value of \$1,000 to be received each year for 15 years assuming a discount rate of 10%? 3. What is the present value of the following stream of cash flow to be received, assuming a discount rate of 9%? Year 1: 0 Year 2: \$10,000 Year 3: \$15,000 4. What is the approximate future value of \$200 invested at an annual interest rate of 5% for 20 years? 5. What is the approximate value future value of \$1,000 to be received each year for 15 years assuming an interest rate of 10%?

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 6. How many years would it take \$1,000 to grow to \$5,000 assuming an annual interest rate of 8%? 7. At what interest rate would \$1,000 grow to \$5,600 in 20 years? 8. At what approximate discount rate would \$10,000 received in 12 years be worth \$5,000 today? 9. For how many years would you need to receive \$1,000 (each year) to be worth \$10,000 today assuming a 5% discount rate? 10. If you place \$10 into a savings account and you know it will earn 12% per year, what is the future value after 4 years? 1. \$56.74 2. \$7606. 3. \$20,000 4. \$530.66 5. \$31,772.50 6. ~21 years 7. 9% 8. 6% 9 . 14-15 years 10. \$15.74...
View Full Document

{[ snackBarMessage ]}

### Page1 / 2

tvm2 - 6 How many years would it take \$1,000 to grow to...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online