What is the present value of a cash flow of $100 per year forever (a perpetuity), assuming: The interest rate is 10 percent. The interest rate is 5 percent. The interest rate is 20 percent.
a. Working with those same three interest rates, what are the future values of $100 today in one year? How about in two years?
b. Working with those same three interest rates, how long will it take you to double your money?