Can you help me get started with this assignment?
Problem 1. In two to three paragraphs, explain why the concept of present value is so important for corporate finance and is often the very first topic taught in any finance class. Do not focus your answer on explaining what present is, instead focus on some specific reasons why you think it is important and why it is taught first in corporate finance classes before other topics are introduced.
Problem 2. Calculate the future value of the following (show all work):
a. $200 if invested for five years at a 4% interest rate
b. $500 if invested for three years at a 7% interest rate
c. $7500 if invested for seven years at an 3% interest rate
d. $2000 if invested for ten years with a 0.6% interest rate
Problem 3. Calculate the present value of the following (show all work):
a. $6500 to be received three years from now with a 2% Interest rate
b. $4500 to be received five years from now with a 5% interest rate
c. $8000 to received two years from now with a 11% interest rate
d. $480,000 to be received eight years from now with a 9% interest rate.
Problem 4. Suppose you are to receive a stream of annual payments (also called an "annuity") of $5000 every year for three years starting this year. The interest rate is 5%. What is the present value of these three payments? (show all work)
Problem 5. Suppose you are to receive a payment of $7000 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? (show all work)