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7. You will receive $1,000 in four years, $2,000 in five years and $3,000 in six years. With an interest rate of 10%, what is
7. You will receive $1,000 in four years, $2,000 in five years and $3,000 in six years. With an interest rate of 10%, what is the present value of these cashflows (their value at year 0)? a. $3,618.28 b. $4,618.28 c. $6,000 d. $6,618.28 8. Which of the following is the best investment option as a depositor: 12% compounded monthly b. 12.3% compounded quarterly c. 12.5% compounded annually
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