Explore BrainMass
Share

Explore BrainMass

    Present Value / Future Values

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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.

    2. Future Values. Compute the future value of a $100 cash flow for the same combinations of rates and times as in problem 1.

    © BrainMass Inc. brainmass.com October 9, 2019, 7:37 pm ad1c9bdddf
    https://brainmass.com/economics/finance/present-value-future-values-124055

    Solution Preview

    1. Present Values. Compute the present value of a $100 cash flow for the following combinations
    of discount rates and times:

    The Present Value = Future Value/(1+r)^n. Here the future value is $100, the rate is given in the problem and the time period n is also ...

    Solution Summary

    The solution explains the calculation of present value and future value

    $2.19