125 % Chapter 4 1. Fill out the missing rows. Interest Rate Future Value Present Value Years $3,150 7 13% 15 7% $17.328 $715 $195 $1,381 11 9% $873 2. You're trying ave to bu new $150,000 car. You have $35,000 today that can be to invested at your bank. The banks pays 2.1 % annunal interest. How long will it be before you have enough to buy the car? 3. You have just received notification that you have won Lottery. However, the prize will be awarded in 80 years. What is the present value of your windfall if the discount the $1 million first prize in the rate is 7.25% 4. You are scheduled to receive $13,000 in two years. When you receive it, you will invest if for six more years at 7.5 % per year. How much will you have in cight years? Chapter 5 1. If the discount rate is 10 % what is the present value fo the cash flows? Year Cash Flow $680 2 $490 3 $975 4 S1,160 2. The discount rate is 8%, what is the future value of these cash flows in year 4? Year Cash Flow S985