What is the present value of $3000 per year for 8 years discounted back to the present at 10 percent?
What is the present value of perpetual stream of cash flows that pays $50,000 at the end of year one and then grows at a rate of 4% per year indefinitely? The rate of interest used to discount the cash flow is 12%.
How much do you have to deposit today so that beginning 11 years from now you can withdraw $10,000 a year for 5 years(Periods 11 through 15) plus an additional amount of $20,000 in the last year (period 15)? Assume an interest rate of 6%