You have applied for a job with a local bank. As part of its evaluation process, you must take an examination of the time value of money analysis covering the following questions. Questions 6 and 7: Show all your steps. Submit your answers using Word or Excel document.

6) Year 1=$1,000; Year 2=$2,000; Year 3=$3,000; and Year 4=$4,000. What is the present value of these cash flows at 10 percent? 7) The present value (t = 0) of the following cash flow stream is $11,958.07 when discounted at 12 percent annually. What is the value of the missing t = 2 cash flow? 0 1 2 3 + + 2,000 PV = 11,958.20 ? 4,000 4,000