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PLEASE ROUND TO THE NEAREST CENT PLEASE ROUND TO THE NEAREST CENT Part 1 What is the present value of $ 1,000 paid at the
PLEASE ROUND TO THE NEAREST CENT
PLEASE ROUND TO THE NEAREST CENT Part 1 What is the present value of $ 1,000 paid at the end of each of the next 100 years if the interest rate is 7% per year? The present value is $ (Round to the nearest cent.) Part 2 A rich aunt has promised you $ 5,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 3 % larger than the last payment. She will continue to show this generosity for 20 years, giving a total of 20 payments. If the interest rate is 5 %, what is her promise worth today? The present value of the aunt's promise is $ .......(Round to the nearest dollar) Part 3 What is the present value of the following set of cash flows, discounted at 15.5 % per year? Year 5103 2 -103 3 $195 4 -195 The present value of the cash flow stream is $ ...(Round to the nearest cent.)
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