What is the present value of a security

Reference no: EM132981103

1. Determine the future value if $5, 000 is invested in each of the following situation:

5% for 10 years

7% for 7 years

2. What is the present value of a security that will pay $5,000 in 20 years @7% interest compunded annually. How would your answer change if this security pays 5% interest for 20 years compounded annually?

Reference no: EM132981103

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