Present value concept Answer each of the following questions. a. How much money would you have to invest today to accumulate $5,500 after 3 years if the rate of return on your investment is 7%? b. What is the present value of $5,500 that you will receive after 8 years if the discount rate is 7%? c. What is the most you would spend today for an investment that will pay $5,500 in 8 years if your opportunity cost is 7%? d. Compare, contrast, and discuss your findings in part a through c a. A single investment made today, eaming 7% 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 7%, 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 7% is $(Round to the nearest cent.) d. Compare, contrast, and discuss your findings in part a through c. (Select answers that apply.) A. In all three cases, the answer is $3,201.05. 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. B. The annual interest rate is also called the discount rate or the opportunity cost. 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 chave the same answer, while part b has a different answer. OD. In all three cases, you are solving for the present value, PV, which is $3,201.05. Click to select your answer(s). 2