Question
1. If you own an investment that will pay out $794 per year for the next 3 years, what the company is worth today using
1. If you own an investment that will pay out $794 per year for the next 3 years, what the company is worth today using a discount rate of 2%. (Please use 5 decimal places and do not use a $ symbol in your answer)
2. If you own a company that will pay out $858 per year for the next 4 years, what the company is worth today using a discount rate of 6%. (Please use 5 decimal places and do not use a $ symbol in your answer)
3. Assume you owe the following 92 in 3 years, 43 in 2 years and 25 in one year, using a discount rate of 3% find the present value of what you owe. (Please use 5 decimal places and do not use a $ symbol in your answer)
4. You plan to buy an engagemnt ring in 3 years. Assume you can earn an interest rate of 5% on whatever is in your bank account. If you can add 2146 to your account today 2187 to your account in one year and 2125 in two years, how much should be in your account in 3 years? (Please use 5 decimal places and do not use a $ symbol in your answer)
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