Question
You have applied for a job. As part of its evaluation process, you must take an examination of the time value of money analysis covering
You have applied for a job. As part of its evaluation process, you must take an examination of the time value of money analysis covering the following questions. Please show your work including each step by using your calculator OR Excel. (Identify N, I/Y, PV, PMT, and FV)
A) Whats the future value of $200 after 3 years if it earns 8%, annual compounding?
B) Whats the present value of $200 to be received in 3 years if the interest rate is 8%, annual compounding?
C) What annual interest rate would cause $1,000 to grow to $2,000 in 2 years?
D) What is the present value of a 6-year, $100 ordinary annuity if the annual interest rate is 4%?
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