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1. if you receive $122 each 6 months for 1 year and the discount rate is...

1. if you receive $122 each 6 months for 1 year and the discount rate is 0.02, what is the present value?

2. If you receive $99 each quarter for 17 years and the discount rate is 0.05, what is the future value?

3. If the present value is $43.08 and the rate of return is 0.041, how much will you have in one year?
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Answer #1

1.

Present Value = 122/(1.01) + 122/(1.01)2

Present Value = $240.39

2.

Future Value = 99[((1 + 0.05/4)68 - 1)/(0.05/4)]

Future Value = $10,512.63

3.

Future Value(in Year 1) = 43.08(1.041)

Future Value(in Year 1) = $44.85

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