Computing present and future values in given case

Reference no: EM1329633

1) Suppose you are to receive a stream of annual payments (also called an "annuity") of $193,723 every year for three years starting this year. The interest rate is 4%. What is the present value of these three payments?

2) Suppose you are to receive a payment of $292,595 every year for three years. You are depositing these payments in a bank account that pays 2% interest. Given these three payments and this interest rate, how much will be in your bank account in three years?

Reference no: EM1329633

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