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(5) What amount today deposited in a bank paying 6% annual interest would allow you to withdraw $2,500 at the end of each year for
(5) What amount today deposited in a bank paying 6% annual interest would allow you to withdraw $2,500 at the end of each year for four years? (6) What would happen to the value of perpetuity if prevailing interest rates decreased? (7) What is the Present Value of the following cash flow stream at a 6 percent discount rate? Year Cash Flow - 200 - 100 - 50 - 500 - 750 i=6% (8) What is the Future Value of the above cash flow stream? (Hint: use only the PV you just calculated!)
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