What is present value

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1. Suppose you invest $1,000 into a mutual fund that is expected to earn an annual rate of return of 11%. How much money will you have in 10 years? How much money will you have in 50?

2. What is the present value of $50,000 received twenty years from now, assuming the interest rate is 6% per year?

3. Use the FV1=PV + Int to solve the following: if you start with $100 in year 0, how much will it be worth in year 3? (Interest rate is assumed to be 5%)

Reference no: EM131962287

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