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1. Exercise One: Compute the Future Value of 100 USD (U.S. Dollars), 75 years from today, if the interest rate is 4.25%, assuming: (a) simple
1. Exercise One: Compute the Future Value of 100 USD (U.S. Dollars), 75 years from today, if the interest rate is 4.25%, assuming: (a) simple interest, (b) daily compounding, (c) continuous compounding, (d) verify your discrete compounding answers by using the FV function in Excel - as shown in class. 2. Exercise Two: Compute the Present Value of 250,000 USD (U.S. Dollars), received 25 years from today, if the interest rate is 11.25%, assuming: (a) simple interest, (b) daily compounding, (c) continuous compounding, (d) verify your discrete compounding answers by using the PV function in Excel - as shown in class
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