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    I need help finding the answers to the questions attached, the class is the time value money

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    How do i compute the PRESENT VALUE of a$100 cash flow for the following combinations of discount rates and times?
    a. r=8 percent t= 10 years
    b. r=8 percent t= 20 years
    c. r=4 percent t=10 years
    d. r=4 percent t=20 years

    And how do I compute the FUTURE VALUE for a $100 cash flow for the same combination of rates and times as in the above problem?

    I am not familiar with all of the abbreviations (for example the r means rate) if there are more abbreviations can you help me with the meaning?

    Also how do I find the Interest rate implied by the following combinations of PRESENT and FUTURE VALUE?

    PRESENT VALUE YEARS FUTURE VALUE

    $400 11 $684
    $183 4 $249
    $300 7 $300

    And how do I find the NUMBER OF PERIODS, how long will it take for $400 to grow to $1,000 at the interest rate specified?

    a. 4 percent
    b. 8 percent
    c. 16 percent

    Your help is GREATLY appreciated Thank you !!!

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    Solution Preview

    How do i compute the PRESENT VALUE of a$100 cash flow for the following combinations of discount rates and times?
    a. r=8 percent t= 10 years
    b. r=8 percent t= 20 years
    c. r=4 percent t=10 years
    d. r=4 percent t=20 years

    The formula is
    PRESENT VALUE = FUTURE VALUE / (1+r)^t
    Where "^" means "to the power of"
    Then
    a. PV = 100 / (1+8%)^10 = $46.32
    b. PV = 100 / (1+8%)^20 = $21.45
    c. PV = 100 / (1+4%)^10 = ...

    $2.49

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