Question: 1. (Present value) What is the present value of the following future amounts?
2. (Compound value) Nikora Ltd., based in Georgia, produces meat and milk products. The company sold old machinery for 100,000 Georgian Lari (GEL) and decided to put this amount in a term deposit, which usually pays 10 percent annually.
a. Calculate the amount of money that Nikora will receive after 2, 4, and 7 years of deposit.
b. Re-calculate results from part (a) if bank offers 10 percent annual compound interest on semi-annual basis.
c. What conclusion can you draw from the calculations you have completed in (a) and (b)?