How much would be willing to pay today for an investment

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Problem 1. What is the present value of $10,000 to be received in 8 years? Your required rate of return is 6% per year.

Problem 2. If you invest $1,000 a year for 15 years at 6% annual interest, how much will you have at the end of the 15th year?

Problem 3. If you buy a 10 year, 2% CD for $12,000. How much is it worth at maturity?

Problem 4. How much would you be willing to pay today for an investment that pays $1,300 per year at the end of the next 10 years? Your required rate of return is 7% per year.

Reference no: EM132758194

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