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Hi please answer questions 5-8 ASAP. Thanks 5. What is the present value today of this security if the rate of interest is 10% per

Hi please answer questions 5-8 ASAP. Thanks

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5. What is the present value today of this security if the rate of interest is 10% per annuum? (Hint: Do not miss the negative signs on some of the Cashflows) 0 1 2 3 4 5 6 100 200 -300 -400 1000 1200 Page 3 of 4 6. If there is a security that triples your investment in 7 years (that is, if you invest $x today it will become $3X in year 7), what is the yearly rate implied on this investment? (Hint: this similar to Annuities and Perpetuities II - Problem on Slide 6) 7. Suppose you want to start saving a fixed amount C every year, starting t = 4 until t = 8 such that you can collect $30,000 at t = 10. What fixed amount C do you have to set aside every year, (assume that the rate of interest is 4% per year)? (Hint: this similar to TVM practice - Problem 2) 8. What is the PV today of a perpetuity that pays $15 forever starting t = 0 (assume that the rate of interest is 4% per year)? (Hint: this same as TVM practice - Problem 4)

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