Present value concept Answer each of the following questions. a. How much money would you have to invest today to accumulate $5,500 after 8 years if the rate of return on your investment is 15%? b. What is the present value of $5,500 that you will receive after 8 years if the discount rate is 15%? c. What would you be willing to spend today for an investment that will pay $5,500 in 8 years if your opportunity cost is 15%? If you could buy the investment for less than that, what would that imply about your rate of return? d. Compare, contrast, and discuss your findings in part a through c. a. A single investment made today, earning 15% annual interest, worth $5,500 at the end of 8 years is $ (Round to the nearest cent.) b. The present value of $5,500 to be received at the end of 8 years, if the discount rate is 15%, is $ (Round to the nearest cent.) c. The most you would spend today for an investment that will pay $5,500 in 8 years if your opportunity cost is 15% is $ . (Round to the nearest cent.) If you can buy the investment for less than $1,797.95 then your implied rate of return will be than 15%. d. Compare, contrast, and discuss your findings in part a through c. (Select all answers that apply.) A. In all three cases, you are solving for the present value, PV, which is $1,797.96. B. In all three cases, the answer is $1,797.96. In part a, it is the payment, PMT. In part b, it is the present value, PV. In part c, it is the future value, FV. C. In parts a and c, $5,500 is the future value, FV. In part b, $5,500 is the present value, PV. Therefore, parts a and c have the same answer, while part b has a different answer. D. The annual interest rate is also called the discount rate or the opportunity cost