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Present Value / Future Values

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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.

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

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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