The time value of money: present value calculations
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1. Present Values. 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.
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In the problem given, $100 mentioned is the future value, r is the interest rate and t is the time in years. I plucked the ...
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