What is its present value if the interest rate

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1. A Treasury bond pays $1 million at the end of 20 years. What is its present value if the interest rate is 4%.

2. An annuity due with 10 annual payments has a present value of $1,244,353. If the interest rate is 15%, what is the annual payment?

3. If you invest $100,000 today, how much will your savings be worth at the end of 9 years if the interest rate is 10%?

4. You invest $95,525 for 20 years at 11.7%. Inflation over the same period is 4% a year. What is the real value of your savings at the end of that period?

Reference no: EM131571862

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