13:42 LTE Done Practice Question Day 1 1) What is the present value (PV) of $100,000 received five years from now, assuming the interest rate is 8% per year? A) $68,058.32 B) $73,502.99 C) $82,609,42 D) $60,000.00 2) What is the present value (PV) of $80,000 received ten years from now, assuming the interest rate is 5% per year? A) $40,000.00 B) $38,422.76 C) $49,113.06 D) $76,000.00 3) What is the present value (PV) of $50,000 received 20 years from now, assuming the interest rate is 4% per year? A) $40,000.00 B) $10,000.00 C) $5,242.88 D) $22, 819.35 4) Consider the following timeline: Date $100 $200 $300 flow PV = 100/(1.09) 1+ 200/(1.09)^2+300/(1.09) 3 If the current market rate of interest is 9%, then the present value (PV) of this timeline as of year 0 is closest to: A) $400 B) $637 C) $600 D) $492 5. You are offered $1050 one year from now, or $1000 today. If your bank pays an interest rate of 5% would you A) Be Indifferent B) Prefer 1,000 today C) Prefer 1050 in one year D) Consult your financial advisor