How processes of discounting and compounding related


Question 1) How much will you have in 5 years if you put $10,000 into an account that earns 6% annually?

Question 2) What is the present value of $100,000 you will receive in 10 years if you are using an 8% discount rate?

Question 3) How much will you have in 10 years if you invest $1,000 a year starting today at an interest rate of 7%?

Question 4) What is the present value of $2,000 received at the end of each year for the next 15 years at a discount rate of 7%?

Question 5) How are the processes of discounting and compounding related? Explain.

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Finance Basics: How processes of discounting and compounding related
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