Consider the following alternatives: i. $130 received in one year ii. $200 received in five years iii. $310 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 8% per year. b. What is your ranking if the interest rate is 5% per year? c. What is your ranking if the interest rate is 15% per year? a. Rank the alternatives from most valuable to least valuable if the interest rate is 8% per year. First calculate the present value (PV) of each alternative: The PV of $130 received in one year if the interest rate is 8% per year is $| (Round to the nearest cent.) The local electronics store is offering a promotion "1year same as cash meaning that you can buy a TV now, and wait a year to pay (with no interest) So it- you take home a S1000 TV today, you will owe them 51,000 in one year. If your bank is offering 43% interest what is the true cost of the TV to you today? The true cost of the TV to you today is $(Round to the nearest cent) Calculate the future value of $5,000 in a. Four years at an interest rate of 7% per year. b. Eight years at an interest rate of 7% per year. c. Four years at an interest rate of 14% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? a. Four years at an interest rate of 7% per year. The future value of $5,000 in 4 years at an interest rate of 7% per year is $ (Round to the nearest dollar What is the present value of $10,000 received: a. Twenty four years from today when the interest rate is 4% per year? b. Twelve years from today when the interest rate is 4% per year? c. Six years from today when the interest rate is 4% per year? a. Twenty four years from today when the interest rate is 4% per year? The present value of $10,000 received 24 years from today when the interest rate is 4% per year is $ (F Your grandfather put some money into an account for you on the day you were born. You are now 18 years old and are allowed to withdraw the money. The accoum currently has $4,382 in it and pays an interest rate of 6% a. How much money would be in the account if you left the money there until your 25th birthday? b. What if you left the money until your 65th birthday? c. How much money did your grandfather originally put into the account? a. How much money would be in the account if you left the money there until your 25th birthday The amount that would be in the account if you left the money there until your 25th birthday would be $(Round to the nearest dollar)