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1. Suppose you invest $100 for ten years. The interest rate is r=0.06 (six percent) per year and the interest payment is reinvested (added to

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1. Suppose you invest $100 for ten years. The interest rate is r=0.06 (six percent) per year and the interest payment is reinvested (added to the principal) cach year. Calculate the interest payment and future value (FV) at the end of each year. 2. Suppose you expect to receive $100 per year for ten years: the first payment is one year from today and subsequent payments occur annually on this date. The interest rate is r = 0.10 (ten percent) per year. Calculate the present value (PV) of each year's payment. Calculate the present value (PV) of the full stream of future payments. 3. You need to review the lecture notes to answer this problem. Suppose you want to buy an asset that pays you $100 per year forever. The interest rate is r=0.09 (nine percent). How much should you pay for this asset

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