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Present value of an investment

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Reference no: EM13962103

Show the relationship between present and future value by solving the following:

A. What is the present value of an investment that offers payments of $6,000 at the end of year 1; $4,000 at the end of year 2; and $2,000 at the end of year 3 if money can be invested at 9 percent?

B. How much money would be in the bank at the end of 3 years if the proceeds from an investment that offers payments of $6,000 at the end of year 1; $4,000 at the end of year 2; and $2,000 at the end of year 3 were deposited in a savings account that paid 9 percent interest?

C. What is the present value of an investment that offers one payment of $13,488.60 at the end of year 3 if money can be invested at 9 percent?

Reference no: EM13962103

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