How much would you pay for the right to receive

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Answer the following time value of money questions assuming the interest rate is 12 percent.

Question 1: What is the present value of $2,100 to be received in four years?

Question 2: What is the present value of $2,100 to be received in eight years?

Question 3: What will be the value in seven years of $12,600 invested today?

Question 4: How much would you pay for the right to receive $5,600 at the end of year 1, $4,600 at the end of year 2, and $8,600 at the end of year 5?

Question 5: How long will it take for a $2,600 investment to double in value?

Question 6: What will be the value in 20 years of $2,400 invested at the end of each year for the next 20 years?

Reference no: EM133715846

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