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Unformatted text preview: is the present value of these cash flows? How much money will be in the bank account 25 years from today? 5) You will receive $150 today and $250 two years from today which you will put into a bank account with an interest rate of 6% p.a. What is the present value of these cash flows today? How much will be in your bank account 10 years from today? 6) You are promised a payment of $250 every year starting next year for three years (last payment at t=3). If the interest rate is 3% p.a., what is the present value of these cash flows? What is the future value of these cash flows at t=3?...
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 Fall '11
 ToddStotnitch
 Corporate Finance, Interest, Interest Rate, bank account

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