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You invest $2,000 today and expect to sell your investment for $4,500 in 10 years a-1. Calculate the present value of the future payoff, if
You invest $2,000 today and expect to sell your investment for $4,500 in 10 years a-1. Calculate the present value of the future payoff, if the interest rate is 8%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value a-2. Is this a good deal? Yes No b-1. Calculate the present value, if the interest rate is 11 %. (Do not round intermedlate calculations. Round your answer to 2 decimal places.) Present value b-2. Is this a good deal? Yes No Your wealthy uncle established a bank account with $2,600 for you when you were born. For the first 7 years of your life, the interest rate earned on the account was 5%. Since then, rates have been only 3%. Now you are 22 years old and ready to cash in. How much is in your account? (Do not round Intermedlate calculations. Round your answer to 2 decimal places.) Amount A zero-coupon bond that will pay $1,000 in 15 years is selling today for $239.39. What interest rate does the bond offer? (Do not round intermediate calculations. Enter your answer as a whole percent.) Interest rate %
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