Explain what is the present value of the cash flows

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1. You are going to be given $45,000 in 7 years. Assuming an inflation rate of 2.5%, what is the present value of this amount?

2. Present value of annuity problem- You will receive $1,200 at the end of the next 15 years, assuming a 8% discount rate, what is the present value of the cash flows?

3. Future value of single sum problem- You put $5,000 in an investment account today which will earn 6% over the next 11 years, what is the future value?

4. Future value of annuity problem- You deposit $10,000 into a retirement account at the end of the next 10 years earning 9% interest, what is the future value of your retirement after 10 years

5. Present value of single sum problem- You are going to be given $100,000 in 12 years. Assuming an inflation rate of 3.5%, what is the present value of this amount?

Reference no: EM13215114

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