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1 a . What is the ending value ( future value ) of a one - year project that requires an initial investment of $

1a. What is the ending value (future value) of a one-year project that requires an initial investment of $100 and generates an interest rate of 15%?
1b. What is the current value (present value) of a one-year investment that provides an interest rate of 10% and has an expected future value of $220?
1c. What is the ending value (future value) of a three-year project that requires an initial investment of $100 and generates an interest rate of 8%?
1d. What is the ending value (future value) of a seven-year project that requires an initial investment of $250 and generates an interest rate of 11%?
1e. What is the ending value (future value) of a twelve-year project that requires an initial investment of $375 and generates an interest rate of 5%?
1f. What is the current value (present value) of a three-year investment that provides an interest rate of 10% and has an expected future value of $330?
1g. What is the current value (present value) of a seven-year investment that provides an interest rate of 12.5% and has a11 expected future value of $1,234.56?
1h. What is the current value (present value) of a seven-year investment that provides an interest rate of 12.0% and has an expected future value of $1,234.56?
1i. What is the current value (present value) of a seven-year investment that provides an interest rate of 11.0% and has an expected future value of $1,234.56?
1j. In questions 1g-1i, we looked for the present value of an investment. In each of these questions, the investment had the same terminal value (future value =$1,234.56) and the same lifespan (7 years). The only factor that changed is the interest rate. What happened to the current value (present value) of the investment as the interest rate changed? What does this tell you about the relationship between interest rates and present value?
As interest rate i fell from 12.5% to 12.0%, the present value increased from $541.3081 to $558.4522. As interest rate i fell further, from 12.0% to 11.0%, present value increased more, from $558.4522 to $594.6362.
This suggests that there is an inverse (opposite) relationship between the interest rate and the present value of an investment, ceteris paribus (all else held constant).
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