Question

Question 1: Discounting A. You find $100,000 under your mattress 25 years from now. What is the Present Value (PV) of that $100,000 dollars if you assume 2.8% inflation over that 25-year period? (The answer is not the face value of $100,000, but much less) B. You are promised $1,000,000 in five years. Assuming that you can earn 5% interest on investments, how much is that $1,000,000 worth now?

Answer 1

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- 2x Σ AutoSum : A PV, FV, ANNUITY (Autosaved) - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins % Cut Calibri -11AA = = = Dr Wrap Text General Ea Copy Paste BIU D - A E F Merge & Center $ % Format Painter 48.08 Conditional Format Cell Formatting as Table Styles Clipboard Font Alignment Number Styles MJ15 Fox MC MD ME ME MG MH MIMJMK ML Insert Delete Format Fill 2 Clear Sort & Filter Editing Find & Select Cells MM MN MO MP MQ 5 100000 FV = YEARS 25 RATE 2.80% NM + ico PV = PV = ANSWER PV = FV/(1+r)^n 100000/(1+0.028)^25 50138.59 10 FV= RATE YEARS 1000000 5% 5 11 12 13 14 15 16 PV = PV = ANSWER PV = FV/(1+r)^n 1000000/(1+0.05)^5 783526.17 17 18 H N CAP STRU VALUE profit margin loan with points LOCK BOX DILUTION DOLLAR COST AVG EXPONPER APR CPI ear FVA LOAN OPTIONSpv, fv, annuity ferences pva 52 BO 53 130% Rea _ 0 + B . * ENG 05:07 29-10-2019